Correlation Between Graphjet Technology and OCBCSP

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

By analyzing existing cross correlation between Graphjet Technology and OCBCSP 1832 10 SEP 30, you can compare the effects of market volatilities on Graphjet Technology and OCBCSP 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 OCBCSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphjet Technology and OCBCSP.

Diversification Opportunities for Graphjet Technology and OCBCSP

-0.53

Correlation Coefficient

Graphjet Technology  OCBCSP

Excellent diversification

The 3 months correlation between Graphjet and OCBCSP is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Graphjet Technology and OCBCSP 1832 10 SEP 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCBCSP 1832 10 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 OCBCSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCBCSP 1832 10 has no effect on the direction of Graphjet Technology i.e., Graphjet Technology and OCBCSP go up and down completely randomly.

Pair Corralation between Graphjet Technology and OCBCSP

Considering the 90-day investment horizon Graphjet Technology is expected to generate 934.32 times more return on investment than OCBCSP. However, Graphjet Technology is 934.32 times more volatile than OCBCSP 1832 10 SEP 30. It trades about 0.08 of its potential returns per unit of risk. OCBCSP 1832 10 SEP 30 is currently generating about 0.08 per unit of risk. If you would invest  276.00  in Graphjet Technology on October 6, 2024 and sell it today you would lose (187.00) from holding Graphjet Technology or give up 67.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	20.0%
Values	Daily Returns

Graphjet Technology  vs.  OCBCSP 1832 10 SEP 30

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.

OCBCSP 1832 10

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OCBCSP 1832 10 SEP 30 are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, OCBCSP is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Graphjet Technology and OCBCSP

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

The idea behind Graphjet Technology and OCBCSP 1832 10 SEP 30 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.