Correlation Between GREENX METALS and Biogen
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Biogen 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 Biogen 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 Biogen Inc, you can compare the effects of market volatilities on GREENX METALS and Biogen 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 Biogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Biogen.
Diversification Opportunities for GREENX METALS and Biogen
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GREENX and Biogen is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Biogen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biogen Inc 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 Biogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biogen Inc has no effect on the direction of GREENX METALS i.e., GREENX METALS and Biogen go up and down completely randomly.
Pair Corralation between GREENX METALS and Biogen
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Biogen. In addition to that, GREENX METALS is 2.5 times more volatile than Biogen Inc. It trades about -0.17 of its total potential returns per unit of risk. Biogen Inc is currently generating about -0.27 per unit of volatility. If you would invest 16,795 in Biogen Inc on August 29, 2024 and sell it today you would lose (1,675) from holding Biogen Inc or give up 9.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GREENX METALS LTD vs. Biogen Inc
Performance |
| Timeline |
| GREENX METALS LTD |
| Biogen Inc |
GREENX METALS and Biogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Biogen
The main advantage of trading using opposite GREENX METALS and Biogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Biogen 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 Biogen will offset losses from the drop in Biogen's long position.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Talanx AG |
| Biogen vs. CEOTRONICS | Biogen vs. Coor Service Management | Biogen vs. AGF Management Limited | Biogen vs. Jupiter Fund Management |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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