Correlation Between GREENX METALS and Caltagirone SpA
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Caltagirone SpA 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 Caltagirone SpA 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 Caltagirone SpA, you can compare the effects of market volatilities on GREENX METALS and Caltagirone SpA 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 Caltagirone SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Caltagirone SpA.
Diversification Opportunities for GREENX METALS and Caltagirone SpA
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between GREENX and Caltagirone is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Caltagirone SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caltagirone SpA 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 Caltagirone SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caltagirone SpA has no effect on the direction of GREENX METALS i.e., GREENX METALS and Caltagirone SpA go up and down completely randomly.
Pair Corralation between GREENX METALS and Caltagirone SpA
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Caltagirone SpA. But the stock apears to be less risky and, when comparing its historical volatility, GREENX METALS LTD is 1.06 times less risky than Caltagirone SpA. The stock trades about -0.17 of its potential returns per unit of risk. The Caltagirone SpA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 568.00 in Caltagirone SpA on September 1, 2024 and sell it today you would earn a total of 26.00 from holding Caltagirone SpA or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Caltagirone SpA
Performance |
| Timeline |
| GREENX METALS LTD |
| Caltagirone SpA |
GREENX METALS and Caltagirone SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Caltagirone SpA
The main advantage of trading using opposite GREENX METALS and Caltagirone SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Caltagirone SpA 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 Caltagirone SpA will offset losses from the drop in Caltagirone SpA's long position.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech | GREENX METALS vs. SIVERS SEMICONDUCTORS AB |
| Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc | Caltagirone SpA vs. Apple Inc |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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