Correlation Between GreenX Metals and CATLIN GROUP
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and CATLIN GROUP 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 CATLIN GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and CATLIN GROUP , you can compare the effects of market volatilities on GreenX Metals and CATLIN GROUP 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 CATLIN GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and CATLIN GROUP.
Diversification Opportunities for GreenX Metals and CATLIN GROUP
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GreenX and CATLIN is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and CATLIN GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CATLIN 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 CATLIN GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CATLIN GROUP has no effect on the direction of GreenX Metals i.e., GreenX Metals and CATLIN GROUP go up and down completely randomly.
Pair Corralation between GreenX Metals and CATLIN GROUP
Assuming the 90 days trading horizon GreenX Metals is expected to generate 5.26 times more return on investment than CATLIN GROUP. However, GreenX Metals is 5.26 times more volatile than CATLIN GROUP . It trades about 0.01 of its potential returns per unit of risk. CATLIN GROUP is currently generating about -0.12 per unit of risk. If you would invest 3,700 in GreenX Metals on October 20, 2024 and sell it today you would lose (150.00) from holding GreenX Metals or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. CATLIN GROUP
Performance |
| Timeline |
| GreenX Metals |
| CATLIN GROUP |
GreenX Metals and CATLIN GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and CATLIN GROUP
The main advantage of trading using opposite GreenX Metals and CATLIN GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, CATLIN GROUP 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 CATLIN GROUP will offset losses from the drop in CATLIN GROUP's long position.| GreenX Metals vs. Arrow Electronics | GreenX Metals vs. UNIQA Insurance Group | GreenX Metals vs. Costco Wholesale Corp | GreenX Metals vs. Norwegian Air Shuttle |
| CATLIN GROUP vs. Sartorius Stedim Biotech | CATLIN GROUP vs. Flow Traders NV | CATLIN GROUP vs. Travel Leisure Co | CATLIN GROUP vs. Raytheon Technologies Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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