Correlation Between GreenX Metals and Eclectic Bar
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Eclectic Bar 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 Eclectic Bar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Eclectic Bar Group, you can compare the effects of market volatilities on GreenX Metals and Eclectic Bar 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 Eclectic Bar. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Eclectic Bar.
Diversification Opportunities for GreenX Metals and Eclectic Bar
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GreenX and Eclectic is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Eclectic Bar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eclectic Bar Group 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 Eclectic Bar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eclectic Bar Group has no effect on the direction of GreenX Metals i.e., GreenX Metals and Eclectic Bar go up and down completely randomly.
Pair Corralation between GreenX Metals and Eclectic Bar
Assuming the 90 days trading horizon GreenX Metals is expected to generate 43.43 times more return on investment than Eclectic Bar. However, GreenX Metals is 43.43 times more volatile than Eclectic Bar Group. It trades about 0.32 of its potential returns per unit of risk. Eclectic Bar Group is currently generating about 0.22 per unit of risk. If you would invest 3,550 in GreenX Metals on November 6, 2024 and sell it today you would earn a total of 500.00 from holding GreenX Metals or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Eclectic Bar Group
Performance |
| Timeline |
| GreenX Metals |
| Eclectic Bar Group |
GreenX Metals and Eclectic Bar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Eclectic Bar
The main advantage of trading using opposite GreenX Metals and Eclectic Bar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Eclectic Bar 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 Eclectic Bar will offset losses from the drop in Eclectic Bar's long position.| GreenX Metals vs. Dalata Hotel Group | GreenX Metals vs. Alfa Financial Software | GreenX Metals vs. Public Storage | GreenX Metals vs. Scandic Hotels Group |
| Eclectic Bar vs. Bank of Ireland | Eclectic Bar vs. Nordea Bank Abp | Eclectic Bar vs. St Galler Kantonalbank | Eclectic Bar vs. Tatton Asset 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |