Correlation Between GreenX Metals and Logintrade

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

By analyzing existing cross correlation between GreenX Metals and Logintrade SA, you can compare the effects of market volatilities on GreenX Metals and Logintrade 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 Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Logintrade.

Diversification Opportunities for GreenX Metals and Logintrade

-0.19

Correlation Coefficient

GreenX Metals  Logintrade

Good diversification

The 3 months correlation between GreenX and Logintrade is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade SA 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 Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of GreenX Metals i.e., GreenX Metals and Logintrade go up and down completely randomly.

Pair Corralation between GreenX Metals and Logintrade

Assuming the 90 days trading horizon GreenX Metals is expected to generate 2.88 times less return on investment than Logintrade. In addition to that, GreenX Metals is 1.42 times more volatile than Logintrade SA. It trades about 0.03 of its total potential returns per unit of risk. Logintrade SA is currently generating about 0.12 per unit of volatility. If you would invest  318.00  in Logintrade SA on September 4, 2024 and sell it today you would earn a total of  30.00  from holding Logintrade SA or generate 9.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	56.1%
Values	Daily Returns

GreenX Metals  vs.  Logintrade SA

GreenX Metals

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GreenX Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, GreenX Metals is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Logintrade SA

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Logintrade SA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Logintrade reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GreenX Metals and Logintrade

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

The idea behind GreenX Metals and Logintrade SA 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.