Correlation Between GreenX Metals and FinecoBank SpA
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and FinecoBank SpA 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 FinecoBank SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and FinecoBank SpA, you can compare the effects of market volatilities on GreenX Metals and FinecoBank SpA 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 FinecoBank SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and FinecoBank SpA.
Diversification Opportunities for GreenX Metals and FinecoBank SpA
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and FinecoBank is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and FinecoBank SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinecoBank SpA 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 FinecoBank SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinecoBank SpA has no effect on the direction of GreenX Metals i.e., GreenX Metals and FinecoBank SpA go up and down completely randomly.
Pair Corralation between GreenX Metals and FinecoBank SpA
Assuming the 90 days trading horizon GreenX Metals is expected to generate 1.63 times more return on investment than FinecoBank SpA. However, GreenX Metals is 1.63 times more volatile than FinecoBank SpA. It trades about 0.43 of its potential returns per unit of risk. FinecoBank SpA is currently generating about 0.29 per unit of risk. If you would invest 3,400 in GreenX Metals on October 30, 2024 and sell it today you would earn a total of 650.00 from holding GreenX Metals or generate 19.12% 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. FinecoBank SpA
Performance |
| Timeline |
| GreenX Metals |
| FinecoBank SpA |
GreenX Metals and FinecoBank SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and FinecoBank SpA
The main advantage of trading using opposite GreenX Metals and FinecoBank SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, FinecoBank SpA 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 FinecoBank SpA will offset losses from the drop in FinecoBank SpA's long position.| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Ferrexpo PLC | GreenX Metals vs. Atalaya Mining |
| FinecoBank SpA vs. Spirent Communications plc | FinecoBank SpA vs. Alliance Data Systems | FinecoBank SpA vs. Fidelity National Information | FinecoBank SpA vs. Cellnex Telecom SA |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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