Correlation Between FIRST NATIONAL and GREENX METALS

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Can any of the company-specific risk be diversified away by investing in both FIRST NATIONAL and GREENX METALS 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 FIRST NATIONAL and GREENX METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST NATIONAL FIN and GREENX METALS LTD, you can compare the effects of market volatilities on FIRST NATIONAL and GREENX METALS 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 FIRST NATIONAL with a short position of GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST NATIONAL and GREENX METALS.

Diversification Opportunities for FIRST NATIONAL and GREENX METALS

FIRSTGREENXDiversified AwayFIRSTGREENXDiversified Away100%
-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between FIRST and GREENX is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding FIRST NATIONAL FIN and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD and FIRST NATIONAL 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 FIRST NATIONAL FIN are associated (or correlated) with GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of FIRST NATIONAL i.e., FIRST NATIONAL and GREENX METALS go up and down completely randomly.

Pair Corralation between FIRST NATIONAL and GREENX METALS

Assuming the 90 days horizon FIRST NATIONAL FIN is expected to generate 0.46 times more return on investment than GREENX METALS. However, FIRST NATIONAL FIN is 2.19 times less risky than GREENX METALS. It trades about 0.05 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about -0.05 per unit of risk. If you would invest  2,516  in FIRST NATIONAL FIN on October 20, 2024 and sell it today you would earn a total of  124.00  from holding FIRST NATIONAL FIN or generate 4.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

FIRST NATIONAL FIN  vs.  GREENX METALS LTD

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -1001020
JavaScript chart by amCharts 3.21.1563Z 5PMA
       Timeline  
FIRST NATIONAL FIN 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in FIRST NATIONAL FIN are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, FIRST NATIONAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2627282930
GREENX METALS LTD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GREENX METALS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's primary indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.380.40.420.440.460.48

FIRST NATIONAL and GREENX METALS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.13-4.59-3.05-1.510.01.563.154.746.34 0.020.040.060.080.10
JavaScript chart by amCharts 3.21.1563Z 5PMA
       Returns  

Pair Trading with FIRST NATIONAL and GREENX METALS

The main advantage of trading using opposite FIRST NATIONAL and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST NATIONAL position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.
The idea behind FIRST NATIONAL FIN and GREENX METALS LTD 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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