Correlation Between GreenX Metals and Atresmedia
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Atresmedia 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 Atresmedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Atresmedia, you can compare the effects of market volatilities on GreenX Metals and Atresmedia 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 Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Atresmedia.
Diversification Opportunities for GreenX Metals and Atresmedia
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and Atresmedia is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia 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 Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of GreenX Metals i.e., GreenX Metals and Atresmedia go up and down completely randomly.
Pair Corralation between GreenX Metals and Atresmedia
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Atresmedia. In addition to that, GreenX Metals is 2.58 times more volatile than Atresmedia. It trades about -0.18 of its total potential returns per unit of risk. Atresmedia is currently generating about 0.05 per unit of volatility. If you would invest 446.00 in Atresmedia on August 29, 2024 and sell it today you would earn a total of 5.00 from holding Atresmedia or generate 1.12% 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. Atresmedia
Performance |
| Timeline |
| GreenX Metals |
| Atresmedia |
GreenX Metals and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Atresmedia
The main advantage of trading using opposite GreenX Metals and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| GreenX Metals vs. Atalaya Mining | GreenX Metals vs. Anglo Asian Mining | GreenX Metals vs. Metals Exploration Plc |
| Atresmedia vs. Lendinvest PLC | Atresmedia vs. Neometals | Atresmedia vs. Coor Service Management | Atresmedia vs. Albion Technology General |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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