Correlation Between Medical Properties and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Medical Properties and GreenX 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 Medical Properties and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust and GreenX Metals, you can compare the effects of market volatilities on Medical Properties and GreenX 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 Medical Properties with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and GreenX Metals.
Diversification Opportunities for Medical Properties and GreenX Metals
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Medical and GreenX is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Medical Properties 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 Medical Properties Trust are associated (or correlated) with GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Medical Properties i.e., Medical Properties and GreenX Metals go up and down completely randomly.
Pair Corralation between Medical Properties and GreenX Metals
Assuming the 90 days trading horizon Medical Properties is expected to generate 1.47 times less return on investment than GreenX Metals. In addition to that, Medical Properties is 1.8 times more volatile than GreenX Metals. It trades about 0.12 of its total potential returns per unit of risk. GreenX Metals is currently generating about 0.33 per unit of volatility. If you would invest 3,400 in GreenX Metals on October 23, 2024 and sell it today you would earn a total of 400.00 from holding GreenX Metals or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Medical Properties Trust vs. GreenX Metals
Performance |
| Timeline |
| Medical Properties Trust |
| GreenX Metals |
Medical Properties and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and GreenX Metals
The main advantage of trading using opposite Medical Properties and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, GreenX 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Medical Properties vs. Home Depot | Medical Properties vs. Synthomer plc | Medical Properties vs. Geely Automobile Holdings | Medical Properties vs. Temple Bar Investment |
| GreenX Metals vs. Advanced Medical Solutions | GreenX Metals vs. AMG Advanced Metallurgical | GreenX Metals vs. LBG Media PLC | GreenX Metals vs. Medical Properties Trust |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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