Correlation Between Graphjet Technology and Stepan
Can any of the company-specific risk be diversified away by investing in both Graphjet Technology and Stepan 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 Stepan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graphjet Technology and Stepan Company, you can compare the effects of market volatilities on Graphjet Technology and Stepan 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 Stepan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphjet Technology and Stepan.
Diversification Opportunities for Graphjet Technology and Stepan
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Graphjet and Stepan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Graphjet Technology and Stepan Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepan Company 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 Stepan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepan Company has no effect on the direction of Graphjet Technology i.e., Graphjet Technology and Stepan go up and down completely randomly.
Pair Corralation between Graphjet Technology and Stepan
Considering the 90-day investment horizon Graphjet Technology is expected to generate 6.44 times more return on investment than Stepan. However, Graphjet Technology is 6.44 times more volatile than Stepan Company. It trades about 0.03 of its potential returns per unit of risk. Stepan Company is currently generating about -0.18 per unit of risk. If you would invest 534.00 in Graphjet Technology on July 23, 2025 and sell it today you would lose (23.00) from holding Graphjet Technology or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graphjet Technology vs. Stepan Company
Performance |
| Timeline |
| Graphjet Technology |
| Stepan Company |
Graphjet Technology and Stepan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphjet Technology and Stepan
The main advantage of trading using opposite Graphjet Technology and Stepan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphjet Technology position performs unexpectedly, Stepan 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 Stepan will offset losses from the drop in Stepan's long position.| Graphjet Technology vs. Compass Minerals International | Graphjet Technology vs. Lithium Argentina AG | Graphjet Technology vs. Nexa Resources SA | Graphjet Technology vs. Nouveau Monde Graphite |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |