Correlation Between GreenX Metals and Catena Media
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Catena Media 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 Catena Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Catena Media PLC, you can compare the effects of market volatilities on GreenX Metals and Catena Media 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 Catena Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Catena Media.
Diversification Opportunities for GreenX Metals and Catena Media
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between GreenX and Catena is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Catena Media PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catena Media PLC 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 Catena Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catena Media PLC has no effect on the direction of GreenX Metals i.e., GreenX Metals and Catena Media go up and down completely randomly.
Pair Corralation between GreenX Metals and Catena Media
Assuming the 90 days trading horizon GreenX Metals is expected to generate 0.68 times more return on investment than Catena Media. However, GreenX Metals is 1.47 times less risky than Catena Media. It trades about -0.3 of its potential returns per unit of risk. Catena Media PLC is currently generating about -0.24 per unit of risk. If you would invest 4,150 in GreenX Metals on August 30, 2024 and sell it today you would lose (650.00) from holding GreenX Metals or give up 15.66% 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. Catena Media PLC
Performance |
| Timeline |
| GreenX Metals |
| Catena Media PLC |
GreenX Metals and Catena Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Catena Media
The main advantage of trading using opposite GreenX Metals and Catena Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Catena Media 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 Catena Media will offset losses from the drop in Catena Media's long position.| GreenX Metals vs. Vitec Software Group | GreenX Metals vs. Allianz Technology Trust | GreenX Metals vs. Spotify Technology SA | GreenX Metals vs. Microchip Technology |
| Catena Media vs. Lendinvest PLC | Catena Media vs. Neometals | Catena Media vs. Albion Technology General | Catena Media vs. Jupiter Fund Management |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |