Correlation Between GREEN BATTERY and Prosiebensat

Can any of the company-specific risk be diversified away by investing in both GREEN BATTERY and Prosiebensat 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 Prosiebensat 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 Prosiebensat 1 Media, you can compare the effects of market volatilities on GREEN BATTERY and Prosiebensat 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 Prosiebensat. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREEN BATTERY and Prosiebensat.

Diversification Opportunities for GREEN BATTERY and Prosiebensat

-0.17

Correlation Coefficient

GREEN BATTERY  Prosiebensat

Good diversification

The 3 months correlation between GREEN and Prosiebensat is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding GREEN BATTERY MINERALS and Prosiebensat 1 Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prosiebensat 1 Media 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 Prosiebensat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prosiebensat 1 Media has no effect on the direction of GREEN BATTERY i.e., GREEN BATTERY and Prosiebensat go up and down completely randomly.

Pair Corralation between GREEN BATTERY and Prosiebensat

Assuming the 90 days horizon GREEN BATTERY MINERALS is expected to generate 20.28 times more return on investment than Prosiebensat. However, GREEN BATTERY is 20.28 times more volatile than Prosiebensat 1 Media. It trades about 0.07 of its potential returns per unit of risk. Prosiebensat 1 Media is currently generating about -0.03 per unit of risk. If you would invest  43.00  in GREEN BATTERY MINERALS on October 3, 2024 and sell it today you would lose (38.45) from holding GREEN BATTERY MINERALS or give up 89.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.61%
Values	Daily Returns

GREEN BATTERY MINERALS  vs.  Prosiebensat 1 Media

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 fragile basic indicators, GREEN BATTERY reported solid returns over the last few months and may actually be approaching a breakup point.

Prosiebensat 1 Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Prosiebensat 1 Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with GREEN BATTERY and Prosiebensat

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

The idea behind GREEN BATTERY MINERALS and Prosiebensat 1 Media 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.