Correlation Between Focus Graphite and Calissio Resources

Can any of the company-specific risk be diversified away by investing in both Focus Graphite and Calissio Resources 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 Focus Graphite and Calissio Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Focus Graphite and Calissio Resources Group, you can compare the effects of market volatilities on Focus Graphite and Calissio Resources 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 Focus Graphite with a short position of Calissio Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Graphite and Calissio Resources.

Diversification Opportunities for Focus Graphite and Calissio Resources

0.54

Correlation Coefficient

Focus Graphite  Calissio Resources

Very weak diversification

The 3 months correlation between Focus and Calissio is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Focus Graphite and Calissio Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calissio Resources and Focus Graphite 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 Focus Graphite are associated (or correlated) with Calissio Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calissio Resources has no effect on the direction of Focus Graphite i.e., Focus Graphite and Calissio Resources go up and down completely randomly.

Pair Corralation between Focus Graphite and Calissio Resources

Assuming the 90 days horizon Focus Graphite is expected to generate 1.03 times more return on investment than Calissio Resources. However, Focus Graphite is 1.03 times more volatile than Calissio Resources Group. It trades about 0.02 of its potential returns per unit of risk. Calissio Resources Group is currently generating about -0.07 per unit of risk. If you would invest  7.00  in Focus Graphite on September 15, 2024 and sell it today you would lose (1.00) from holding Focus Graphite or give up 14.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Focus Graphite  vs.  Calissio Resources Group

Focus Graphite

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Focus Graphite are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Focus Graphite may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Calissio Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calissio Resources Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Focus Graphite and Calissio Resources

The main advantage of trading using opposite Focus Graphite and Calissio Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Graphite position performs unexpectedly, Calissio Resources 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 Calissio Resources will offset losses from the drop in Calissio Resources' long position.

The idea behind Focus Graphite and Calissio Resources Group 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 Commodity Directory module to find actively traded commodities issued by global exchanges.