Correlation Between Graphene Solar and Trican Well
Can any of the company-specific risk be diversified away by investing in both Graphene Solar and Trican Well 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 Solar and Trican Well into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphene Solar Technologies and Trican Well Service, you can compare the effects of market volatilities on Graphene Solar and Trican Well 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 Solar with a short position of Trican Well. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphene Solar and Trican Well.
Diversification Opportunities for Graphene Solar and Trican Well
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graphene and Trican is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Graphene Solar Technologies and Trican Well Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trican Well Service and Graphene Solar 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 Solar Technologies are associated (or correlated) with Trican Well. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trican Well Service has no effect on the direction of Graphene Solar i.e., Graphene Solar and Trican Well go up and down completely randomly.
Pair Corralation between Graphene Solar and Trican Well
Given the investment horizon of 90 days Graphene Solar Technologies is expected to generate 117.53 times more return on investment than Trican Well. However, Graphene Solar is 117.53 times more volatile than Trican Well Service. It trades about 0.21 of its potential returns per unit of risk. Trican Well Service is currently generating about 0.01 per unit of risk. If you would invest 0.52 in Graphene Solar Technologies on September 10, 2024 and sell it today you would earn a total of 0.92 from holding Graphene Solar Technologies or generate 176.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Graphene Solar Technologies vs. Trican Well Service
Performance |
Timeline |
Graphene Solar Techn |
Trican Well Service |
Graphene Solar and Trican Well Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Graphene Solar and Trican Well
The main advantage of trading using opposite Graphene Solar and Trican Well positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphene Solar position performs unexpectedly, Trican Well 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 Trican Well will offset losses from the drop in Trican Well's long position.Graphene Solar vs. Southern Silver Exploration | Graphene Solar vs. AbraSilver Resource Corp | Graphene Solar vs. Gatos Silver | Graphene Solar vs. Monumental Minerals Corp |
Trican Well vs. STEP Energy Services | Trican Well vs. Koil Energy Solutions | Trican Well vs. TerraVest Industries | Trican Well vs. Source Energy Services |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |