Correlation Between GreenX Metals and Carlton Investments
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Carlton Investments 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 GreenX Metals and Carlton Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Carlton Investments, you can compare the effects of market volatilities on GreenX Metals and Carlton Investments 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 GreenX Metals with a short position of Carlton Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Carlton Investments.
Diversification Opportunities for GreenX Metals and Carlton Investments
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between GreenX and Carlton is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Carlton Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlton Investments and GreenX 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 GreenX Metals are associated (or correlated) with Carlton Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlton Investments has no effect on the direction of GreenX Metals i.e., GreenX Metals and Carlton Investments go up and down completely randomly.
Pair Corralation between GreenX Metals and Carlton Investments
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Carlton Investments. In addition to that, GreenX Metals is 2.67 times more volatile than Carlton Investments. It trades about -0.33 of its total potential returns per unit of risk. Carlton Investments is currently generating about 0.11 per unit of volatility. If you would invest 3,000 in Carlton Investments on September 1, 2024 and sell it today you would earn a total of 70.00 from holding Carlton Investments or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Carlton Investments
Performance |
| Timeline |
| GreenX Metals |
| Carlton Investments |
GreenX Metals and Carlton Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Carlton Investments
The main advantage of trading using opposite GreenX Metals and Carlton Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Carlton Investments 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 Carlton Investments will offset losses from the drop in Carlton Investments' long position.| GreenX Metals vs. Advanced Braking Technology | GreenX Metals vs. Red Hill Iron | GreenX Metals vs. Bluescope Steel | GreenX Metals vs. Ainsworth Game Technology |
| Carlton Investments vs. GQG Partners DRC | Carlton Investments vs. MFF Capital Investments | Carlton Investments vs. Metrics Master Income | Carlton Investments vs. L1 Long Short |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| 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 | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |