Correlation Between GREENX METALS and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Lloyds Banking 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 Lloyds Banking 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 Lloyds Banking Group, you can compare the effects of market volatilities on GREENX METALS and Lloyds Banking 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 Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Lloyds Banking.
Diversification Opportunities for GREENX METALS and Lloyds Banking
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GREENX and Lloyds is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group 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 Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of GREENX METALS i.e., GREENX METALS and Lloyds Banking go up and down completely randomly.
Pair Corralation between GREENX METALS and Lloyds Banking
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 2.97 times more return on investment than Lloyds Banking. However, GREENX METALS is 2.97 times more volatile than Lloyds Banking Group. It trades about 0.0 of its potential returns per unit of risk. Lloyds Banking Group is currently generating about -0.04 per unit of risk. If you would invest 42.00 in GREENX METALS LTD on September 14, 2024 and sell it today you would lose (1.00) from holding GREENX METALS LTD or give up 2.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Lloyds Banking Group
Performance |
| Timeline |
| GREENX METALS LTD |
| Lloyds Banking Group |
GREENX METALS and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Lloyds Banking
The main advantage of trading using opposite GREENX METALS and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking'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 |
| Lloyds Banking vs. ECHO INVESTMENT ZY | Lloyds Banking vs. Japan Asia Investment | Lloyds Banking vs. GREENX METALS LTD | Lloyds Banking vs. DISTRICT METALS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |