Correlation Between American Manganese and Graphano Energy

Can any of the company-specific risk be diversified away by investing in both American Manganese and Graphano Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining American Manganese and Graphano Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between American Manganese and Graphano Energy, you can compare the effects of market volatilities on American Manganese and Graphano Energy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in American Manganese with a short position of Graphano Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Manganese and Graphano Energy.

Diversification Opportunities for American Manganese and Graphano Energy

0.09

Correlation Coefficient

American Manganese  Graphano Energy

Significant diversification

The 3 months correlation between American and Graphano is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding American Manganese and Graphano Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphano Energy and American Manganese is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on American Manganese are associated (or correlated) with Graphano Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphano Energy has no effect on the direction of American Manganese i.e., American Manganese and Graphano Energy go up and down completely randomly.

Pair Corralation between American Manganese and Graphano Energy

Assuming the 90 days horizon American Manganese is expected to under-perform the Graphano Energy. But the otc stock apears to be less risky and, when comparing its historical volatility, American Manganese is 9.98 times less risky than Graphano Energy. The otc stock trades about -0.15 of its potential returns per unit of risk. The Graphano Energy is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  4.06  in Graphano Energy on December 30, 2024 and sell it today you would earn a total of  0.94  from holding Graphano Energy or generate 23.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

American Manganese  vs.  Graphano Energy

American Manganese

Risk-Adjusted Performance

Very Weak

Over the last 90 days American Manganese has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Graphano Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Graphano Energy are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Graphano Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Manganese and Graphano Energy

The main advantage of trading using opposite American Manganese and Graphano Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Manganese position performs unexpectedly, Graphano Energy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Graphano Energy will offset losses from the drop in Graphano Energy's long position.

The idea behind American Manganese and Graphano Energy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.