Correlation Between Nexa Resources and Graphjet Technology

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

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

Diversification Opportunities for Nexa Resources and Graphjet Technology

-0.35

Correlation Coefficient

Nexa Resources  Graphjet Technology

Very good diversification

The 3 months correlation between Nexa and Graphjet is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Nexa Resources SA and Graphjet Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graphjet Technology and Nexa 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 Nexa Resources SA are associated (or correlated) with Graphjet Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graphjet Technology has no effect on the direction of Nexa Resources i.e., Nexa Resources and Graphjet Technology go up and down completely randomly.

Pair Corralation between Nexa Resources and Graphjet Technology

Given the investment horizon of 90 days Nexa Resources is expected to generate 26.59 times less return on investment than Graphjet Technology. But when comparing it to its historical volatility, Nexa Resources SA is 44.21 times less risky than Graphjet Technology. It trades about 0.19 of its potential returns per unit of risk. Graphjet Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  387.00  in Graphjet Technology on August 28, 2025 and sell it today you would lose (189.00) from holding Graphjet Technology or give up 48.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Nexa Resources SA  vs.  Graphjet Technology

Nexa Resources SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nexa Resources SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Nexa Resources sustained solid returns over the last few months and may actually be approaching a breakup point.

Graphjet Technology

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Graphjet Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Graphjet Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nexa Resources and Graphjet Technology

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

The idea behind Nexa Resources SA and Graphjet Technology 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.