Correlation Between Globe Trade and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Globe Trade 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 Globe Trade and GREENX METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Trade Centre and GREENX METALS LTD, you can compare the effects of market volatilities on Globe Trade 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 Globe Trade with a short position of GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Trade and GREENX METALS.
Diversification Opportunities for Globe Trade and GREENX METALS
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Globe and GREENX is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Globe Trade Centre and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD and Globe Trade 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 Globe Trade Centre 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 LTD has no effect on the direction of Globe Trade i.e., Globe Trade and GREENX METALS go up and down completely randomly.
Pair Corralation between Globe Trade and GREENX METALS
Assuming the 90 days trading horizon Globe Trade Centre is expected to under-perform the GREENX METALS. But the stock apears to be less risky and, when comparing its historical volatility, Globe Trade Centre is 32.72 times less risky than GREENX METALS. The stock trades about -0.15 of its potential returns per unit of risk. The GREENX METALS LTD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 40.00 in GREENX METALS LTD on September 3, 2024 and sell it today you would lose (1.00) from holding GREENX METALS LTD or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Trade Centre vs. GREENX METALS LTD
Performance |
| Timeline |
| Globe Trade Centre |
| GREENX METALS LTD |
Globe Trade and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Trade and GREENX METALS
The main advantage of trading using opposite Globe Trade and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Trade 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's long position.| Globe Trade vs. National Health Investors | Globe Trade vs. ONWARD MEDICAL BV | Globe Trade vs. FEMALE HEALTH | Globe Trade vs. Compugroup Medical SE |
| GREENX METALS vs. CORONGLRES CDIS101 | GREENX METALS vs. AJ LUCAS GROUP | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |