Correlation Between Graphano Energy and American Manganese
Can any of the company-specific risk be diversified away by investing in both Graphano Energy and American Manganese 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 Graphano Energy and American Manganese into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphano Energy and American Manganese, you can compare the effects of market volatilities on Graphano Energy and American Manganese 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 Graphano Energy with a short position of American Manganese. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphano Energy and American Manganese.
Diversification Opportunities for Graphano Energy and American Manganese
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Graphano and American is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Graphano Energy and American Manganese in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Manganese and Graphano Energy 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 Graphano Energy are associated (or correlated) with American Manganese. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Manganese has no effect on the direction of Graphano Energy i.e., Graphano Energy and American Manganese go up and down completely randomly.
Pair Corralation between Graphano Energy and American Manganese
Assuming the 90 days horizon Graphano Energy is expected to generate 8.79 times more return on investment than American Manganese. However, Graphano Energy is 8.79 times more volatile than American Manganese. It trades about 0.15 of its potential returns per unit of risk. American Manganese is currently generating about -0.18 per unit of risk. If you would invest 5.75 in Graphano Energy on December 2, 2024 and sell it today you would earn a total of 2.25 from holding Graphano Energy or generate 39.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.31% |
Values | Daily Returns |
Graphano Energy vs. American Manganese
Performance |
Timeline |
Graphano Energy |
American Manganese |
Graphano Energy and American Manganese Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Graphano Energy and American Manganese
The main advantage of trading using opposite Graphano Energy and American Manganese positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphano Energy position performs unexpectedly, American Manganese 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 American Manganese will offset losses from the drop in American Manganese's long position.Graphano Energy vs. Generation Mining Limited | Graphano Energy vs. Northern Graphite | Graphano Energy vs. Western Resources Corp | Graphano Energy vs. Cypress Development Corp |
American Manganese vs. Graphano Energy | American Manganese vs. Generation Mining Limited | American Manganese vs. Northern Graphite | American Manganese vs. Western Resources Corp |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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