Correlation Between Greenvale Mining and Sellas Life

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

By analyzing existing cross correlation between Greenvale Mining Limited and Sellas Life Sciences, you can compare the effects of market volatilities on Greenvale Mining and Sellas Life 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 Greenvale Mining with a short position of Sellas Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenvale Mining and Sellas Life.

Diversification Opportunities for Greenvale Mining and Sellas Life

0.0

Correlation Coefficient

Greenvale Mining  Sellas Life

Pay attention - limited upside

The 3 months correlation between Greenvale and Sellas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Greenvale Mining Limited and Sellas Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sellas Life Sciences and Greenvale Mining 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 Greenvale Mining Limited are associated (or correlated) with Sellas Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sellas Life Sciences has no effect on the direction of Greenvale Mining i.e., Greenvale Mining and Sellas Life go up and down completely randomly.

Pair Corralation between Greenvale Mining and Sellas Life

If you would invest  110.00  in Sellas Life Sciences on October 24, 2024 and sell it today you would earn a total of  3.50  from holding Sellas Life Sciences or generate 3.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Greenvale Mining Limited  vs.  Sellas Life Sciences

Greenvale Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Greenvale Mining Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Greenvale Mining is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Sellas Life Sciences

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sellas Life Sciences are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Sellas Life may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Greenvale Mining and Sellas Life

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

The idea behind Greenvale Mining Limited and Sellas Life Sciences 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.