Correlation Between GREEN BATTERY and VIAPLAY GROUP

Can any of the company-specific risk be diversified away by investing in both GREEN BATTERY and VIAPLAY GROUP 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 GREEN BATTERY and VIAPLAY GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GREEN BATTERY MINERALS and VIAPLAY GROUP AB, you can compare the effects of market volatilities on GREEN BATTERY and VIAPLAY GROUP 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 GREEN BATTERY with a short position of VIAPLAY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREEN BATTERY and VIAPLAY GROUP.

Diversification Opportunities for GREEN BATTERY and VIAPLAY GROUP

0.16

Correlation Coefficient

GREEN BATTERY  VIAPLAY GROUP

Average diversification

The 3 months correlation between GREEN and VIAPLAY is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GREEN BATTERY MINERALS and VIAPLAY GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIAPLAY GROUP AB and GREEN BATTERY 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 GREEN BATTERY MINERALS are associated (or correlated) with VIAPLAY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIAPLAY GROUP AB has no effect on the direction of GREEN BATTERY i.e., GREEN BATTERY and VIAPLAY GROUP go up and down completely randomly.

Pair Corralation between GREEN BATTERY and VIAPLAY GROUP

Assuming the 90 days horizon GREEN BATTERY MINERALS is expected to under-perform the VIAPLAY GROUP. In addition to that, GREEN BATTERY is 1.73 times more volatile than VIAPLAY GROUP AB. It trades about -0.07 of its total potential returns per unit of risk. VIAPLAY GROUP AB is currently generating about 0.0 per unit of volatility. If you would invest  5.99  in VIAPLAY GROUP AB on October 6, 2024 and sell it today you would lose (0.14) from holding VIAPLAY GROUP AB or give up 2.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	52.94%
Values	Daily Returns

GREEN BATTERY MINERALS  vs.  VIAPLAY GROUP AB

GREEN BATTERY MINERALS

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days GREEN BATTERY MINERALS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly unsteady basic indicators, GREEN BATTERY reported solid returns over the last few months and may actually be approaching a breakup point.

VIAPLAY GROUP AB

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in VIAPLAY GROUP AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, VIAPLAY GROUP is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GREEN BATTERY and VIAPLAY GROUP

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

The idea behind GREEN BATTERY MINERALS and VIAPLAY GROUP AB 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.