Correlation Between GREENX METALS and Meli Hotels
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Meli Hotels 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 Meli Hotels 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 Meli Hotels International, you can compare the effects of market volatilities on GREENX METALS and Meli Hotels 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 Meli Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Meli Hotels.
Diversification Opportunities for GREENX METALS and Meli Hotels
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GREENX and Meli is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Meli Hotels International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meli Hotels International 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 Meli Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meli Hotels International has no effect on the direction of GREENX METALS i.e., GREENX METALS and Meli Hotels go up and down completely randomly.
Pair Corralation between GREENX METALS and Meli Hotels
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Meli Hotels. In addition to that, GREENX METALS is 2.68 times more volatile than Meli Hotels International. It trades about -0.15 of its total potential returns per unit of risk. Meli Hotels International is currently generating about 0.09 per unit of volatility. If you would invest 669.00 in Meli Hotels International on August 28, 2024 and sell it today you would earn a total of 19.00 from holding Meli Hotels International or generate 2.84% 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. Meli Hotels International
Performance |
| Timeline |
| GREENX METALS LTD |
| Meli Hotels International |
GREENX METALS and Meli Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Meli Hotels
The main advantage of trading using opposite GREENX METALS and Meli Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Meli Hotels 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 Meli Hotels will offset losses from the drop in Meli Hotels' 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 |
| Meli Hotels vs. Clean Energy Fuels | Meli Hotels vs. GREENX METALS LTD | Meli Hotels vs. GRIFFIN MINING LTD | Meli Hotels vs. Infrastrutture Wireless Italiane |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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