Correlation Between GREENX METALS and Takkt AG
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Takkt 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 Takkt 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 Takkt AG, you can compare the effects of market volatilities on GREENX METALS and Takkt 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 Takkt AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Takkt AG.
Diversification Opportunities for GREENX METALS and Takkt AG
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GREENX and Takkt is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Takkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takkt AG 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 Takkt AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takkt AG has no effect on the direction of GREENX METALS i.e., GREENX METALS and Takkt AG go up and down completely randomly.
Pair Corralation between GREENX METALS and Takkt AG
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 3.62 times more return on investment than Takkt AG. However, GREENX METALS is 3.62 times more volatile than Takkt AG. It trades about -0.04 of its potential returns per unit of risk. Takkt AG is currently generating about -0.3 per unit of risk. If you would invest 43.00 in GREENX METALS LTD on August 31, 2024 and sell it today you would lose (5.00) from holding GREENX METALS LTD or give up 11.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
GREENX METALS LTD vs. Takkt AG
Performance |
| Timeline |
| GREENX METALS LTD |
| Takkt AG |
GREENX METALS and Takkt AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Takkt AG
The main advantage of trading using opposite GREENX METALS and Takkt AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Takkt 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 Takkt AG will offset losses from the drop in Takkt AG'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 |
| Takkt AG vs. THRACE PLASTICS | Takkt AG vs. Materialise NV | Takkt AG vs. GREENX METALS LTD | Takkt AG vs. LION ONE 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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