Correlation Between GreenX Metals and Northern Star
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Northern Star 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 Northern Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Northern Star Resources, you can compare the effects of market volatilities on GreenX Metals and Northern Star 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 Northern Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Northern Star.
Diversification Opportunities for GreenX Metals and Northern Star
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GreenX and Northern is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Northern Star Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Star Resources 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 Northern Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Star Resources has no effect on the direction of GreenX Metals i.e., GreenX Metals and Northern Star go up and down completely randomly.
Pair Corralation between GreenX Metals and Northern Star
Assuming the 90 days trading horizon GreenX Metals is expected to generate 1.45 times less return on investment than Northern Star. In addition to that, GreenX Metals is 1.84 times more volatile than Northern Star Resources. It trades about 0.02 of its total potential returns per unit of risk. Northern Star Resources is currently generating about 0.06 per unit of volatility. If you would invest 1,019 in Northern Star Resources on August 28, 2024 and sell it today you would earn a total of 742.00 from holding Northern Star Resources or generate 72.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Northern Star Resources
Performance |
| Timeline |
| GreenX Metals |
| Northern Star Resources |
GreenX Metals and Northern Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Northern Star
The main advantage of trading using opposite GreenX Metals and Northern Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Northern Star 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 Northern Star will offset losses from the drop in Northern Star's long position.| GreenX Metals vs. Charter Hall Education | GreenX Metals vs. Garda Diversified Ppty | GreenX Metals vs. Olivers Real Food | GreenX Metals vs. Carlton Investments |
| Northern Star vs. Australian United Investment | Northern Star vs. Flagship Investments | Northern Star vs. Queste Communications | Northern Star vs. Regal Investment |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Positions Ratings 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 | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |