Correlation Between CNVISION MEDIA and GREEN BATTERY

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

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

Diversification Opportunities for CNVISION MEDIA and GREEN BATTERY

0.07

Correlation Coefficient

CNVISION MEDIA  GREEN BATTERY

Significant diversification

The 3 months correlation between CNVISION and GREEN is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and GREEN BATTERY MINERALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREEN BATTERY MINERALS and CNVISION MEDIA 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 CNVISION MEDIA are associated (or correlated) with GREEN BATTERY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREEN BATTERY MINERALS has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and GREEN BATTERY go up and down completely randomly.

Pair Corralation between CNVISION MEDIA and GREEN BATTERY

Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 2.92 times less return on investment than GREEN BATTERY. But when comparing it to its historical volatility, CNVISION MEDIA is 4.12 times less risky than GREEN BATTERY. It trades about 0.23 of its potential returns per unit of risk. GREEN BATTERY MINERALS is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  3.90  in GREEN BATTERY MINERALS on October 3, 2024 and sell it today you would earn a total of  0.65  from holding GREEN BATTERY MINERALS or generate 16.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	63.16%
Values	Daily Returns

CNVISION MEDIA  vs.  GREEN BATTERY MINERALS

CNVISION MEDIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CNVISION MEDIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, CNVISION MEDIA is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

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.

Pair Trading with CNVISION MEDIA and GREEN BATTERY

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

The idea behind CNVISION MEDIA and GREEN BATTERY MINERALS 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.