Correlation Between Graphene Solar and ChannelAdvisor Corp

Can any of the company-specific risk be diversified away by investing in both Graphene Solar and ChannelAdvisor Corp 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 ChannelAdvisor Corp 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 ChannelAdvisor Corp, you can compare the effects of market volatilities on Graphene Solar and ChannelAdvisor Corp 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 ChannelAdvisor Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphene Solar and ChannelAdvisor Corp.

Diversification Opportunities for Graphene Solar and ChannelAdvisor Corp

-0.86

Correlation Coefficient

Graphene Solar  ChannelAdvisor Corp

Pay attention - limited upside

The 3 months correlation between Graphene and ChannelAdvisor is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Graphene Solar Technologies and ChannelAdvisor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChannelAdvisor Corp 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 ChannelAdvisor Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChannelAdvisor Corp has no effect on the direction of Graphene Solar i.e., Graphene Solar and ChannelAdvisor Corp go up and down completely randomly.

Pair Corralation between Graphene Solar and ChannelAdvisor Corp

If you would invest  0.33  in Graphene Solar Technologies on February 8, 2024 and sell it today you would earn a total of  0.27  from holding Graphene Solar Technologies or generate 81.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	2.38%
Values	Daily Returns

Graphene Solar Technologies  vs.  ChannelAdvisor Corp

Graphene Solar Techn

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Graphene Solar Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Graphene Solar showed solid returns over the last few months and may actually be approaching a breakup point.

ChannelAdvisor Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ChannelAdvisor Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, ChannelAdvisor Corp is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Graphene Solar and ChannelAdvisor Corp

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

The idea behind Graphene Solar Technologies and ChannelAdvisor 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.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.