Correlation Between GreenX Metals and Kitwave Group
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Kitwave 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 Kitwave 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 Kitwave Group PLC, you can compare the effects of market volatilities on GreenX Metals and Kitwave 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 Kitwave Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Kitwave Group.
Diversification Opportunities for GreenX Metals and Kitwave Group
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GreenX and Kitwave is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Kitwave Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kitwave Group 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 Kitwave Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kitwave Group PLC has no effect on the direction of GreenX Metals i.e., GreenX Metals and Kitwave Group go up and down completely randomly.
Pair Corralation between GreenX Metals and Kitwave Group
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Kitwave Group. In addition to that, GreenX Metals is 1.57 times more volatile than Kitwave Group PLC. It trades about -0.29 of its total potential returns per unit of risk. Kitwave Group PLC is currently generating about 0.03 per unit of volatility. If you would invest 31,500 in Kitwave Group PLC on August 30, 2024 and sell it today you would earn a total of 300.00 from holding Kitwave Group PLC or generate 0.95% 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. Kitwave Group PLC
Performance |
| Timeline |
| GreenX Metals |
| Kitwave Group PLC |
GreenX Metals and Kitwave Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Kitwave Group
The main advantage of trading using opposite GreenX Metals and Kitwave Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Kitwave 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 Kitwave Group will offset losses from the drop in Kitwave Group's long position.| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Centamin PLC | GreenX Metals vs. Atalaya Mining |
| Kitwave Group vs. OneSavings Bank PLC | Kitwave Group vs. JB Hunt Transport | Kitwave Group vs. Discover Financial Services | Kitwave Group vs. Summit Materials Cl |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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