Correlation Between Globe Metals and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both Globe Metals and Actinogen Medical 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 Metals and Actinogen Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Metals Mining and Actinogen Medical, you can compare the effects of market volatilities on Globe Metals and Actinogen Medical 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 Metals with a short position of Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Metals and Actinogen Medical.
Diversification Opportunities for Globe Metals and Actinogen Medical
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Globe and Actinogen is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Globe Metals Mining and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical and Globe 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 Globe Metals Mining are associated (or correlated) with Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of Globe Metals i.e., Globe Metals and Actinogen Medical go up and down completely randomly.
Pair Corralation between Globe Metals and Actinogen Medical
Assuming the 90 days trading horizon Globe Metals is expected to generate 1.07 times less return on investment than Actinogen Medical. In addition to that, Globe Metals is 1.05 times more volatile than Actinogen Medical. It trades about 0.09 of its total potential returns per unit of risk. Actinogen Medical is currently generating about 0.1 per unit of volatility. If you would invest 2.60 in Actinogen Medical on September 13, 2024 and sell it today you would earn a total of 0.40 from holding Actinogen Medical or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Metals Mining vs. Actinogen Medical
Performance |
| Timeline |
| Globe Metals Mining |
| Actinogen Medical |
Globe Metals and Actinogen Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Metals and Actinogen Medical
The main advantage of trading using opposite Globe Metals and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Metals position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.| Globe Metals vs. Northern Star Resources | Globe Metals vs. Evolution Mining | Globe Metals vs. Bluescope Steel | Globe Metals vs. Sandfire Resources NL |
| Actinogen Medical vs. Globe Metals Mining | Actinogen Medical vs. Stelar Metals | Actinogen Medical vs. Truscott Mining Corp | Actinogen Medical vs. Perseus Mining |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |