Correlation Between Innergex Renewable and Graphene Manufacturing

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

By analyzing existing cross correlation between Innergex Renewable Energy and Graphene Manufacturing Group, you can compare the effects of market volatilities on Innergex Renewable and Graphene Manufacturing 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 Innergex Renewable with a short position of Graphene Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innergex Renewable and Graphene Manufacturing.

Diversification Opportunities for Innergex Renewable and Graphene Manufacturing

-0.24

Correlation Coefficient

Innergex Renewable  Graphene Manufacturing

Very good diversification

The 3 months correlation between Innergex and Graphene is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Innergex Renewable Energy and Graphene Manufacturing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphene Manufacturing and Innergex Renewable 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 Innergex Renewable Energy are associated (or correlated) with Graphene Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphene Manufacturing has no effect on the direction of Innergex Renewable i.e., Innergex Renewable and Graphene Manufacturing go up and down completely randomly.

Pair Corralation between Innergex Renewable and Graphene Manufacturing

Assuming the 90 days trading horizon Innergex Renewable is expected to generate 8.75 times less return on investment than Graphene Manufacturing. But when comparing it to its historical volatility, Innergex Renewable Energy is 19.16 times less risky than Graphene Manufacturing. It trades about 0.19 of its potential returns per unit of risk. Graphene Manufacturing Group is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  68.00  in Graphene Manufacturing Group on April 22, 2025 and sell it today you would earn a total of  12.00  from holding Graphene Manufacturing Group or generate 17.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Innergex Renewable Energy  vs.  Graphene Manufacturing Group

Innergex Renewable Energy

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Innergex Renewable Energy are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Innergex Renewable is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Graphene Manufacturing

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Graphene Manufacturing Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Graphene Manufacturing showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Innergex Renewable and Graphene Manufacturing

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

The idea behind Innergex Renewable Energy and Graphene Manufacturing Group 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.