Correlation Between Metals Acquisition and GoGreen Investments

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

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

Diversification Opportunities for Metals Acquisition and GoGreen Investments

0.0

Correlation Coefficient

Metals Acquisition  GoGreen Investments

Pay attention - limited upside

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

Pair Corralation between Metals Acquisition and GoGreen Investments

If you would invest (100.00) in GoGreen Investments Corp on December 29, 2024 and sell it today you would earn a total of  100.00  from holding GoGreen Investments Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Metals Acquisition Limited  vs.  GoGreen Investments Corp

Metals Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Metals Acquisition Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Metals Acquisition is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

GoGreen Investments Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days GoGreen Investments Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, GoGreen Investments is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Metals Acquisition and GoGreen Investments

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

The idea behind Metals Acquisition Limited and GoGreen Investments Corp 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.