Correlation Between GREENX METALS and Identiv
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Identiv 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 Identiv 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 Identiv, you can compare the effects of market volatilities on GREENX METALS and Identiv 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 Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Identiv.
Diversification Opportunities for GREENX METALS and Identiv
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GREENX and Identiv is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv 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 Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of GREENX METALS i.e., GREENX METALS and Identiv go up and down completely randomly.
Pair Corralation between GREENX METALS and Identiv
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 1.02 times more return on investment than Identiv. However, GREENX METALS is 1.02 times more volatile than Identiv. It trades about 0.14 of its potential returns per unit of risk. Identiv is currently generating about -0.48 per unit of risk. If you would invest 40.00 in GREENX METALS LTD on October 16, 2024 and sell it today you would earn a total of 2.00 from holding GREENX METALS LTD or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Identiv
Performance |
| Timeline |
| GREENX METALS LTD |
| Identiv |
GREENX METALS and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Identiv
The main advantage of trading using opposite GREENX METALS and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| GREENX METALS vs. WESANA HEALTH HOLD | GREENX METALS vs. YOOMA WELLNESS INC | GREENX METALS vs. GRIFFIN MINING LTD | GREENX METALS vs. CLOVER HEALTH INV |
| Identiv vs. Highlight Communications AG | Identiv vs. BII Railway Transportation | Identiv vs. COMBA TELECOM SYST | Identiv vs. BROADWIND ENRGY |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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