Correlation Between Greenroc Mining and Scandinavian Tobacco
Can any of the company-specific risk be diversified away by investing in both Greenroc Mining and Scandinavian Tobacco 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 Greenroc Mining and Scandinavian Tobacco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenroc Mining PLC and Scandinavian Tobacco Group, you can compare the effects of market volatilities on Greenroc Mining and Scandinavian Tobacco 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 Greenroc Mining with a short position of Scandinavian Tobacco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenroc Mining and Scandinavian Tobacco.
Diversification Opportunities for Greenroc Mining and Scandinavian Tobacco
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greenroc and Scandinavian is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Greenroc Mining PLC and Scandinavian Tobacco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scandinavian Tobacco and Greenroc Mining 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 Greenroc Mining PLC are associated (or correlated) with Scandinavian Tobacco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scandinavian Tobacco has no effect on the direction of Greenroc Mining i.e., Greenroc Mining and Scandinavian Tobacco go up and down completely randomly.
Pair Corralation between Greenroc Mining and Scandinavian Tobacco
Assuming the 90 days trading horizon Greenroc Mining PLC is expected to under-perform the Scandinavian Tobacco. In addition to that, Greenroc Mining is 2.94 times more volatile than Scandinavian Tobacco Group. It trades about -0.03 of its total potential returns per unit of risk. Scandinavian Tobacco Group is currently generating about -0.01 per unit of volatility. If you would invest 11,112 in Scandinavian Tobacco Group on August 28, 2024 and sell it today you would lose (1,352) from holding Scandinavian Tobacco Group or give up 12.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Greenroc Mining PLC vs. Scandinavian Tobacco Group
Performance |
| Timeline |
| Greenroc Mining PLC |
| Scandinavian Tobacco |
Greenroc Mining and Scandinavian Tobacco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenroc Mining and Scandinavian Tobacco
The main advantage of trading using opposite Greenroc Mining and Scandinavian Tobacco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenroc Mining position performs unexpectedly, Scandinavian Tobacco 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 Scandinavian Tobacco will offset losses from the drop in Scandinavian Tobacco's long position.| Greenroc Mining vs. Givaudan SA | Greenroc Mining vs. Antofagasta PLC | Greenroc Mining vs. Centamin PLC | Greenroc Mining vs. Atalaya Mining |
| Scandinavian Tobacco vs. Samsung Electronics Co | Scandinavian Tobacco vs. Samsung Electronics Co | Scandinavian Tobacco vs. Hyundai Motor | Scandinavian Tobacco vs. Toyota Motor Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |