Correlation Between Graphene Manufacturing and Greystone Logistics

Can any of the company-specific risk be diversified away by investing in both Graphene Manufacturing and Greystone Logistics 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 Graphene Manufacturing and Greystone Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Graphene Manufacturing and Greystone Logistics

-0.23

Correlation Coefficient

Graphene Manufacturing  Greystone Logistics

Very good diversification

The 3 months correlation between Graphene and Greystone is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Graphene Manufacturing Group and Greystone Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greystone Logistics and Graphene Manufacturing 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 Graphene Manufacturing Group are associated (or correlated) with Greystone Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greystone Logistics has no effect on the direction of Graphene Manufacturing i.e., Graphene Manufacturing and Greystone Logistics go up and down completely randomly.

Pair Corralation between Graphene Manufacturing and Greystone Logistics

Assuming the 90 days horizon Graphene Manufacturing Group is expected to generate 3.15 times more return on investment than Greystone Logistics. However, Graphene Manufacturing is 3.15 times more volatile than Greystone Logistics. It trades about 0.04 of its potential returns per unit of risk. Greystone Logistics is currently generating about -0.02 per unit of risk. If you would invest  46.00  in Graphene Manufacturing Group on December 30, 2024 and sell it today you would earn a total of  2.00  from holding Graphene Manufacturing Group or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Graphene Manufacturing Group  vs.  Greystone Logistics

Graphene Manufacturing

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Graphene Manufacturing Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Graphene Manufacturing reported solid returns over the last few months and may actually be approaching a breakup point.

Greystone Logistics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Greystone Logistics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Greystone Logistics is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Graphene Manufacturing and Greystone Logistics

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

The idea behind Graphene Manufacturing Group and Greystone Logistics 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.