Correlation Between GREENX METALS and SIKA AG
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and SIKA AG 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 SIKA AG 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 SIKA AG UNSPADR, you can compare the effects of market volatilities on GREENX METALS and SIKA AG 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 SIKA AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and SIKA AG.
Diversification Opportunities for GREENX METALS and SIKA AG
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between GREENX and SIKA is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and SIKA AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIKA AG UNSPADR 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 SIKA AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIKA AG UNSPADR has no effect on the direction of GREENX METALS i.e., GREENX METALS and SIKA AG go up and down completely randomly.
Pair Corralation between GREENX METALS and SIKA AG
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the SIKA AG. But the stock apears to be less risky and, when comparing its historical volatility, GREENX METALS LTD is 1.72 times less risky than SIKA AG. The stock trades about -0.33 of its potential returns per unit of risk. The SIKA AG UNSPADR is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 2,303 in SIKA AG UNSPADR on January 12, 2025 and sell it today you would lose (283.00) from holding SIKA AG UNSPADR or give up 12.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GREENX METALS LTD vs. SIKA AG UNSPADR
Performance |
| Timeline |
| GREENX METALS LTD |
| SIKA AG UNSPADR |
GREENX METALS and SIKA AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and SIKA AG
The main advantage of trading using opposite GREENX METALS and SIKA AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, SIKA AG 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 SIKA AG will offset losses from the drop in SIKA AG's long position.| GREENX METALS vs. DIVERSIFIED ROYALTY | GREENX METALS vs. REINET INVESTMENTS SCA | GREENX METALS vs. Playa Hotels Resorts | GREENX METALS vs. Scottish Mortgage Investment |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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