Correlation Between Albion Technology and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Albion Technology and GreenX Metals 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 Albion Technology and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albion Technology General and GreenX Metals, you can compare the effects of market volatilities on Albion Technology and GreenX Metals 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 Albion Technology with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albion Technology and GreenX Metals.
Diversification Opportunities for Albion Technology and GreenX Metals
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Albion and GreenX is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Albion Technology General and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Albion Technology 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 Albion Technology General are associated (or correlated) with GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Albion Technology i.e., Albion Technology and GreenX Metals go up and down completely randomly.
Pair Corralation between Albion Technology and GreenX Metals
Assuming the 90 days trading horizon Albion Technology General is expected to generate 0.31 times more return on investment than GreenX Metals. However, Albion Technology General is 3.27 times less risky than GreenX Metals. It trades about 0.01 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.04 per unit of risk. If you would invest 6,693 in Albion Technology General on September 14, 2024 and sell it today you would earn a total of 157.00 from holding Albion Technology General or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albion Technology General vs. GreenX Metals
Performance |
| Timeline |
| Albion Technology General |
| GreenX Metals |
Albion Technology and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albion Technology and GreenX Metals
The main advantage of trading using opposite Albion Technology and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albion Technology position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Albion Technology vs. Fulcrum Metals PLC | Albion Technology vs. Batm Advanced Communications | Albion Technology vs. Empire Metals Limited | Albion Technology vs. Wheaton Precious Metals |
| GreenX Metals vs. Sabien Technology Group | GreenX Metals vs. Albion Technology General | GreenX Metals vs. Zegona Communications Plc | GreenX Metals vs. Pfeiffer Vacuum Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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