Correlation Between Centaur Media and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Centaur Media 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 Centaur Media and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and GreenX Metals, you can compare the effects of market volatilities on Centaur Media 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 Centaur Media with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and GreenX Metals.
Diversification Opportunities for Centaur Media and GreenX Metals
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centaur and GreenX is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Centaur Media 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 Centaur Media 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 Centaur Media i.e., Centaur Media and GreenX Metals go up and down completely randomly.
Pair Corralation between Centaur Media and GreenX Metals
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the GreenX Metals. But the stock apears to be less risky and, when comparing its historical volatility, Centaur Media is 1.38 times less risky than GreenX Metals. The stock trades about -0.13 of its potential returns per unit of risk. The GreenX Metals is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 4,650 in GreenX Metals on August 26, 2024 and sell it today you would lose (1,200) from holding GreenX Metals or give up 25.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. GreenX Metals
Performance |
| Timeline |
| Centaur Media |
| GreenX Metals |
Centaur Media and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and GreenX Metals
The main advantage of trading using opposite Centaur Media and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media 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.| Centaur Media vs. Ally Financial | Centaur Media vs. Cembra Money Bank | Centaur Media vs. Lloyds Banking Group | Centaur Media vs. Datagroup SE |
| GreenX Metals vs. Spirent Communications plc | GreenX Metals vs. European Metals Holdings | GreenX Metals vs. Zoom Video Communications | GreenX Metals vs. Cornish 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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