Correlation Between Graphjet Technology and 22822VBA8

Can any of the company-specific risk be diversified away by investing in both Graphjet Technology and 22822VBA8 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 22822VBA8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Graphjet Technology and CCI 5 11 JAN 28, you can compare the effects of market volatilities on Graphjet Technology and 22822VBA8 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 22822VBA8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphjet Technology and 22822VBA8.

Diversification Opportunities for Graphjet Technology and 22822VBA8

0.71

Correlation Coefficient

Graphjet Technology  22822VBA8

Poor diversification

The 3 months correlation between Graphjet and 22822VBA8 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Graphjet Technology and CCI 5 11 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 22822VBA8 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 22822VBA8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 22822VBA8 has no effect on the direction of Graphjet Technology i.e., Graphjet Technology and 22822VBA8 go up and down completely randomly.

Pair Corralation between Graphjet Technology and 22822VBA8

Considering the 90-day investment horizon Graphjet Technology is expected to generate 79.28 times more return on investment than 22822VBA8. However, Graphjet Technology is 79.28 times more volatile than CCI 5 11 JAN 28. It trades about 0.06 of its potential returns per unit of risk. CCI 5 11 JAN 28 is currently generating about -0.12 per unit of risk. If you would invest  274.00  in Graphjet Technology on October 5, 2024 and sell it today you would lose (174.00) from holding Graphjet Technology or give up 63.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Graphjet Technology  vs.  CCI 5 11 JAN 28

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 unsteady basic indicators, Graphjet Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

22822VBA8

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CCI 5 11 JAN 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 22822VBA8 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Graphjet Technology and 22822VBA8

The main advantage of trading using opposite Graphjet Technology and 22822VBA8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphjet Technology position performs unexpectedly, 22822VBA8 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 22822VBA8 will offset losses from the drop in 22822VBA8's long position.

The idea behind Graphjet Technology and CCI 5 11 JAN 28 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..