Correlation Between GreenX Metals and Globe Trade
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Globe Trade 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 GreenX Metals and Globe Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Globe Trade Centre, you can compare the effects of market volatilities on GreenX Metals and Globe Trade 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 GreenX Metals with a short position of Globe Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Globe Trade.
Diversification Opportunities for GreenX Metals and Globe Trade
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GreenX and Globe is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Globe Trade Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Trade Centre and GreenX Metals 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 GreenX Metals are associated (or correlated) with Globe Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Trade Centre has no effect on the direction of GreenX Metals i.e., GreenX Metals and Globe Trade go up and down completely randomly.
Pair Corralation between GreenX Metals and Globe Trade
Assuming the 90 days trading horizon GreenX Metals is expected to generate 1.56 times more return on investment than Globe Trade. However, GreenX Metals is 1.56 times more volatile than Globe Trade Centre. It trades about 0.1 of its potential returns per unit of risk. Globe Trade Centre is currently generating about -0.02 per unit of risk. If you would invest 180.00 in GreenX Metals on December 29, 2024 and sell it today you would earn a total of 26.00 from holding GreenX Metals or generate 14.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GreenX Metals vs. Globe Trade Centre
Performance |
Timeline |
GreenX Metals |
Globe Trade Centre |
GreenX Metals and Globe Trade Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GreenX Metals and Globe Trade
The main advantage of trading using opposite GreenX Metals and Globe Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Globe Trade 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 Globe Trade will offset losses from the drop in Globe Trade's long position.GreenX Metals vs. Investment Friends Capital | GreenX Metals vs. PZ Cormay SA | GreenX Metals vs. UniCredit SpA | GreenX Metals vs. Datawalk SA |
Globe Trade vs. True Games Syndicate | Globe Trade vs. UniCredit SpA | Globe Trade vs. Examobile SA | Globe Trade vs. Ultimate Games SA |
Check out your portfolio center.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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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