Correlation Between Teradyne and Graphene Solar
Can any of the company-specific risk be diversified away by investing in both Teradyne and Graphene Solar 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 Teradyne and Graphene Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teradyne and Graphene Solar Technologies, you can compare the effects of market volatilities on Teradyne and Graphene Solar 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 Teradyne with a short position of Graphene Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teradyne and Graphene Solar.
Diversification Opportunities for Teradyne and Graphene Solar
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Teradyne and Graphene is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Teradyne and Graphene Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphene Solar Techn and Teradyne 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 Teradyne are associated (or correlated) with Graphene Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphene Solar Techn has no effect on the direction of Teradyne i.e., Teradyne and Graphene Solar go up and down completely randomly.
Pair Corralation between Teradyne and Graphene Solar
Considering the 90-day investment horizon Teradyne is expected to under-perform the Graphene Solar. But the stock apears to be less risky and, when comparing its historical volatility, Teradyne is 77.72 times less risky than Graphene Solar. The stock trades about -0.03 of its potential returns per unit of risk. The Graphene Solar Technologies is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.71 in Graphene Solar Technologies on September 26, 2024 and sell it today you would earn a total of 1.99 from holding Graphene Solar Technologies or generate 280.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Teradyne vs. Graphene Solar Technologies
Performance |
Timeline |
Teradyne |
Graphene Solar Techn |
Teradyne and Graphene Solar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Teradyne and Graphene Solar
The main advantage of trading using opposite Teradyne and Graphene Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teradyne position performs unexpectedly, Graphene Solar 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 Graphene Solar will offset losses from the drop in Graphene Solar's long position.Teradyne vs. IPG Photonics | Teradyne vs. Ultra Clean Holdings | Teradyne vs. Onto Innovation | Teradyne vs. Cohu Inc |
Graphene Solar vs. Photronics | Graphene Solar vs. Axcelis Technologies | Graphene Solar vs. Aehr Test Systems | Graphene Solar vs. Teradyne |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |