Correlation Between Flinders Resources and Graphite One

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

By analyzing existing cross correlation between Flinders Resources Limited and Graphite One, you can compare the effects of market volatilities on Flinders Resources and Graphite One 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 Flinders Resources with a short position of Graphite One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flinders Resources and Graphite One.

Diversification Opportunities for Flinders Resources and Graphite One

0.57

Correlation Coefficient

Flinders Resources  Graphite One

Very weak diversification

The 3 months correlation between Flinders and Graphite is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Flinders Resources Limited and Graphite One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphite One and Flinders Resources 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 Flinders Resources Limited are associated (or correlated) with Graphite One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphite One has no effect on the direction of Flinders Resources i.e., Flinders Resources and Graphite One go up and down completely randomly.

Pair Corralation between Flinders Resources and Graphite One

Assuming the 90 days horizon Flinders Resources Limited is expected to under-perform the Graphite One. But the stock apears to be less risky and, when comparing its historical volatility, Flinders Resources Limited is 1.13 times less risky than Graphite One. The stock trades about -0.06 of its potential returns per unit of risk. The Graphite One is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  98.00  in Graphite One on April 23, 2025 and sell it today you would earn a total of  2.00  from holding Graphite One or generate 2.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Flinders Resources Limited  vs.  Graphite One

Flinders Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flinders Resources Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Graphite One

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Graphite One are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Graphite One may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Flinders Resources and Graphite One

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

The idea behind Flinders Resources Limited and Graphite One 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.