Correlation Between GREENX METALS and Securitas
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Securitas 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 Securitas 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 Securitas AB, you can compare the effects of market volatilities on GREENX METALS and Securitas 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 Securitas. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Securitas.
Diversification Opportunities for GREENX METALS and Securitas
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GREENX and Securitas is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Securitas AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Securitas AB 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 Securitas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Securitas AB has no effect on the direction of GREENX METALS i.e., GREENX METALS and Securitas go up and down completely randomly.
Pair Corralation between GREENX METALS and Securitas
Assuming the 90 days trading horizon GREENX METALS is expected to generate 56.67 times less return on investment than Securitas. In addition to that, GREENX METALS is 1.82 times more volatile than Securitas AB. It trades about 0.0 of its total potential returns per unit of risk. Securitas AB is currently generating about 0.12 per unit of volatility. If you would invest 579.00 in Securitas AB on October 18, 2024 and sell it today you would earn a total of 577.00 from holding Securitas AB or generate 99.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
GREENX METALS LTD vs. Securitas AB
Performance |
| Timeline |
| GREENX METALS LTD |
| Securitas AB |
GREENX METALS and Securitas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Securitas
The main advantage of trading using opposite GREENX METALS and Securitas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Securitas 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 Securitas will offset losses from the drop in Securitas' long position.| GREENX METALS vs. Meiko Electronics Co | GREENX METALS vs. COSMOSTEEL HLDGS | GREENX METALS vs. STORE ELECTRONIC | GREENX METALS vs. STMICROELECTRONICS |
| Securitas vs. AIR PRODCHEMICALS | Securitas vs. De Grey Mining | Securitas vs. GRIFFIN MINING LTD | Securitas vs. GREENX METALS LTD |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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