Correlation Between GREENX METALS and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH, you can compare the effects of market volatilities on GREENX METALS and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and FEMALE HEALTH.
Diversification Opportunities for GREENX METALS and FEMALE HEALTH
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GREENX and FEMALE is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of GREENX METALS i.e., GREENX METALS and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between GREENX METALS and FEMALE HEALTH
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 0.83 times more return on investment than FEMALE HEALTH. However, GREENX METALS LTD is 1.2 times less risky than FEMALE HEALTH. It trades about 0.03 of its potential returns per unit of risk. FEMALE HEALTH is currently generating about -0.04 per unit of risk. If you would invest 37.00 in GREENX METALS LTD on August 28, 2024 and sell it today you would earn a total of 1.00 from holding GREENX METALS LTD or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. FEMALE HEALTH
Performance |
| Timeline |
| GREENX METALS LTD |
| FEMALE HEALTH |
GREENX METALS and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and FEMALE HEALTH
The main advantage of trading using opposite GREENX METALS and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| GREENX METALS vs. PERENNIAL ENERGY HD 01 | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech |
| FEMALE HEALTH vs. GREENX METALS LTD | FEMALE HEALTH vs. Cogent Communications Holdings | FEMALE HEALTH vs. Chunghwa Telecom Co | FEMALE HEALTH vs. Mobilezone Holding AG |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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