Correlation Between Graphex Group and Interra Copper

Can any of the company-specific risk be diversified away by investing in both Graphex Group and Interra Copper 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 Graphex Group and Interra Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Graphex Group Limited and Interra Copper Corp, you can compare the effects of market volatilities on Graphex Group and Interra Copper 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 Graphex Group with a short position of Interra Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphex Group and Interra Copper.

Diversification Opportunities for Graphex Group and Interra Copper

-0.36

Correlation Coefficient

Graphex Group  Interra Copper

Very good diversification

The 3 months correlation between Graphex and Interra is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Graphex Group Limited and Interra Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interra Copper Corp and Graphex Group 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 Graphex Group Limited are associated (or correlated) with Interra Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interra Copper Corp has no effect on the direction of Graphex Group i.e., Graphex Group and Interra Copper go up and down completely randomly.

Pair Corralation between Graphex Group and Interra Copper

Given the investment horizon of 90 days Graphex Group Limited is expected to under-perform the Interra Copper. In addition to that, Graphex Group is 1.52 times more volatile than Interra Copper Corp. It trades about -0.04 of its total potential returns per unit of risk. Interra Copper Corp is currently generating about 0.16 per unit of volatility. If you would invest  5.35  in Interra Copper Corp on December 29, 2024 and sell it today you would earn a total of  3.15  from holding Interra Copper Corp or generate 58.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Graphex Group Limited  vs.  Interra Copper Corp

Graphex Group Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Graphex Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Interra Copper Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Interra Copper Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, Interra Copper reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Graphex Group and Interra Copper

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

The idea behind Graphex Group Limited and Interra Copper Corp 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.