Correlation Between GreenX Metals and Hub24
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Hub24 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 Hub24 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Hub24, you can compare the effects of market volatilities on GreenX Metals and Hub24 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 Hub24. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Hub24.
Diversification Opportunities for GreenX Metals and Hub24
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GreenX and Hub24 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Hub24 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hub24 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 Hub24. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hub24 has no effect on the direction of GreenX Metals i.e., GreenX Metals and Hub24 go up and down completely randomly.
Pair Corralation between GreenX Metals and Hub24
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Hub24. In addition to that, GreenX Metals is 1.25 times more volatile than Hub24. It trades about -0.15 of its total potential returns per unit of risk. Hub24 is currently generating about -0.05 per unit of volatility. If you would invest 7,185 in Hub24 on September 13, 2024 and sell it today you would lose (175.00) from holding Hub24 or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Hub24
Performance |
| Timeline |
| GreenX Metals |
| Hub24 |
GreenX Metals and Hub24 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Hub24
The main advantage of trading using opposite GreenX Metals and Hub24 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Hub24 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 Hub24 will offset losses from the drop in Hub24's long position.| GreenX Metals vs. Argo Investments | GreenX Metals vs. Auctus Alternative Investments | GreenX Metals vs. Skycity Entertainment Group | GreenX Metals vs. MetalsGrove Mining |
| Hub24 vs. Westpac Banking | Hub24 vs. National Australia Bank | Hub24 vs. National Australia Bank | Hub24 vs. National Australia Bank |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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