Correlation Between Gratifii and Greentech Metals

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

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

Diversification Opportunities for Gratifii and Greentech Metals

0.05

Correlation Coefficient

Gratifii  Greentech Metals

Significant diversification

The 3 months correlation between Gratifii and Greentech is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Gratifii and Greentech Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greentech Metals and Gratifii 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 Gratifii are associated (or correlated) with Greentech Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greentech Metals has no effect on the direction of Gratifii i.e., Gratifii and Greentech Metals go up and down completely randomly.

Pair Corralation between Gratifii and Greentech Metals

Assuming the 90 days trading horizon Gratifii is expected to generate 1.06 times more return on investment than Greentech Metals. However, Gratifii is 1.06 times more volatile than Greentech Metals. It trades about 0.05 of its potential returns per unit of risk. Greentech Metals is currently generating about -0.07 per unit of risk. If you would invest  11.00  in Gratifii on December 2, 2024 and sell it today you would earn a total of  1.00  from holding Gratifii or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gratifii  vs.  Greentech Metals

Gratifii

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gratifii are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Gratifii unveiled solid returns over the last few months and may actually be approaching a breakup point.

Greentech Metals

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Gratifii and Greentech Metals

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

The idea behind Gratifii and Greentech Metals 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.