Correlation Between Greenroc Mining and Cornish Metals
Can any of the company-specific risk be diversified away by investing in both Greenroc Mining and Cornish 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 Greenroc Mining and Cornish Metals 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 Cornish Metals, you can compare the effects of market volatilities on Greenroc Mining and Cornish 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 Greenroc Mining with a short position of Cornish Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenroc Mining and Cornish Metals.
Diversification Opportunities for Greenroc Mining and Cornish Metals
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenroc and Cornish is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Greenroc Mining PLC and Cornish Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornish Metals 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 Cornish Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornish Metals has no effect on the direction of Greenroc Mining i.e., Greenroc Mining and Cornish Metals go up and down completely randomly.
Pair Corralation between Greenroc Mining and Cornish Metals
Assuming the 90 days trading horizon Greenroc Mining PLC is expected to under-perform the Cornish Metals. In addition to that, Greenroc Mining is 1.14 times more volatile than Cornish Metals. It trades about -0.04 of its total potential returns per unit of risk. Cornish Metals is currently generating about -0.02 per unit of volatility. If you would invest 816.00 in Cornish Metals on August 25, 2024 and sell it today you would lose (31.00) from holding Cornish Metals or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Greenroc Mining PLC vs. Cornish Metals
Performance |
| Timeline |
| Greenroc Mining PLC |
| Cornish Metals |
Greenroc Mining and Cornish Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenroc Mining and Cornish Metals
The main advantage of trading using opposite Greenroc Mining and Cornish Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenroc Mining position performs unexpectedly, Cornish 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 Cornish Metals will offset losses from the drop in Cornish Metals' long position.| Greenroc Mining vs. Givaudan SA | Greenroc Mining vs. Antofagasta PLC | Greenroc Mining vs. Centamin PLC | Greenroc Mining vs. Atalaya Mining |
| Cornish Metals vs. Retail Estates NV | Cornish Metals vs. Endeavour Mining Corp | Cornish Metals vs. Central Asia Metals | Cornish Metals vs. Panther Metals PLC |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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