Correlation Between Applied Graphene and Olin
Can any of the company-specific risk be diversified away by investing in both Applied Graphene and Olin 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 Applied Graphene and Olin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Graphene Materials and Olin Corporation, you can compare the effects of market volatilities on Applied Graphene and Olin 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 Applied Graphene with a short position of Olin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Graphene and Olin.
Diversification Opportunities for Applied Graphene and Olin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Applied and Olin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Applied Graphene Materials and Olin Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olin and Applied Graphene 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 Applied Graphene Materials are associated (or correlated) with Olin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olin has no effect on the direction of Applied Graphene i.e., Applied Graphene and Olin go up and down completely randomly.
Pair Corralation between Applied Graphene and Olin
If you would invest (100.00) in Applied Graphene Materials on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Applied Graphene Materials or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Applied Graphene Materials vs. Olin Corp.
Performance |
Timeline |
Applied Graphene Mat |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Olin |
Applied Graphene and Olin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Applied Graphene and Olin
The main advantage of trading using opposite Applied Graphene and Olin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Graphene position performs unexpectedly, Olin 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 Olin will offset losses from the drop in Olin's long position.Applied Graphene vs. First Graphene | Applied Graphene vs. Haydale Graphene Industries | Applied Graphene vs. G6 Materials Corp | Applied Graphene vs. Versarien plc |
Olin vs. Select Energy Services | Olin vs. Westlake Chemical | Olin vs. Sensient Technologies | Olin vs. Axalta Coating Systems |
Check out your portfolio center.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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |