Correlation Between GreenX Metals and Catalyst Metals
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Catalyst 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 GreenX Metals and Catalyst Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Catalyst Metals, you can compare the effects of market volatilities on GreenX Metals and Catalyst 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 GreenX Metals with a short position of Catalyst Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Catalyst Metals.
Diversification Opportunities for GreenX Metals and Catalyst Metals
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GreenX and Catalyst is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Catalyst Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Metals 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 Catalyst Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Metals has no effect on the direction of GreenX Metals i.e., GreenX Metals and Catalyst Metals go up and down completely randomly.
Pair Corralation between GreenX Metals and Catalyst Metals
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Catalyst Metals. But the stock apears to be less risky and, when comparing its historical volatility, GreenX Metals is 1.68 times less risky than Catalyst Metals. The stock trades about 0.0 of its potential returns per unit of risk. The Catalyst Metals is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Catalyst Metals on January 23, 2025 and sell it today you would earn a total of 602.00 from holding Catalyst Metals or generate 912.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Catalyst Metals
Performance |
| Timeline |
| GreenX Metals |
| Catalyst Metals |
GreenX Metals and Catalyst Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Catalyst Metals
The main advantage of trading using opposite GreenX Metals and Catalyst Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Catalyst 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 Catalyst Metals will offset losses from the drop in Catalyst Metals' long position.| GreenX Metals vs. Spirit Telecom | GreenX Metals vs. Readytech Holdings | GreenX Metals vs. Hutchison Telecommunications | GreenX Metals vs. Black Rock Mining |
| Catalyst Metals vs. Northern Star Resources | Catalyst Metals vs. Evolution Mining | Catalyst Metals vs. Alcoa Inc | Catalyst Metals vs. Bluescope Steel |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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