Correlation Between GREENX METALS and Atrium Ljungberg
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Atrium Ljungberg 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 Atrium Ljungberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Atrium Ljungberg AB, you can compare the effects of market volatilities on GREENX METALS and Atrium Ljungberg 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 Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Atrium Ljungberg.
Diversification Opportunities for GREENX METALS and Atrium Ljungberg
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GREENX and Atrium is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg 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 LTD are associated (or correlated) with Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of GREENX METALS i.e., GREENX METALS and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between GREENX METALS and Atrium Ljungberg
Assuming the 90 days trading horizon GREENX METALS is expected to generate 12.4 times less return on investment than Atrium Ljungberg. In addition to that, GREENX METALS is 2.35 times more volatile than Atrium Ljungberg AB. It trades about 0.0 of its total potential returns per unit of risk. Atrium Ljungberg AB is currently generating about 0.04 per unit of volatility. If you would invest 1,436 in Atrium Ljungberg AB on September 14, 2024 and sell it today you would earn a total of 238.00 from holding Atrium Ljungberg AB or generate 16.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Atrium Ljungberg AB
Performance |
| Timeline |
| GREENX METALS LTD |
| Atrium Ljungberg |
GREENX METALS and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Atrium Ljungberg
The main advantage of trading using opposite GREENX METALS and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg's long position.| GREENX METALS vs. Eidesvik Offshore ASA | GREENX METALS vs. Flutter Entertainment PLC | GREENX METALS vs. Solstad Offshore ASA | GREENX METALS vs. Seven West Media |
| Atrium Ljungberg vs. ADRIATIC METALS LS 013355 | Atrium Ljungberg vs. Jacquet Metal Service | Atrium Ljungberg vs. GREENX METALS LTD | Atrium Ljungberg vs. Western Copper and |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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