Correlation Between Graphjet Technology and Creek Road

Can any of the company-specific risk be diversified away by investing in both Graphjet Technology and Creek Road 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 Graphjet Technology and Creek Road into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Graphjet Technology and Creek Road Miners, you can compare the effects of market volatilities on Graphjet Technology and Creek Road 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 Graphjet Technology with a short position of Creek Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphjet Technology and Creek Road.

Diversification Opportunities for Graphjet Technology and Creek Road

-0.8

Correlation Coefficient

Graphjet Technology  Creek Road

Pay attention - limited upside

The 3 months correlation between Graphjet and Creek is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Graphjet Technology and Creek Road Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creek Road Miners and Graphjet Technology 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 Graphjet Technology are associated (or correlated) with Creek Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creek Road Miners has no effect on the direction of Graphjet Technology i.e., Graphjet Technology and Creek Road go up and down completely randomly.

Pair Corralation between Graphjet Technology and Creek Road

If you would invest  274.00  in Graphjet Technology on October 6, 2024 and sell it today you would lose (185.00) from holding Graphjet Technology or give up 67.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	1.61%
Values	Daily Returns

Graphjet Technology  vs.  Creek Road Miners

Graphjet Technology

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Graphjet Technology are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Graphjet Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Creek Road Miners

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Creek Road Miners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Creek Road is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Graphjet Technology and Creek Road

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

The idea behind Graphjet Technology and Creek Road Miners 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.

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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.