Correlation Between GreenX Metals and Biztech Konsulting
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Biztech Konsulting 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 Biztech Konsulting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Biztech Konsulting SA, you can compare the effects of market volatilities on GreenX Metals and Biztech Konsulting 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 Biztech Konsulting. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Biztech Konsulting.
Diversification Opportunities for GreenX Metals and Biztech Konsulting
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and Biztech is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Biztech Konsulting SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biztech Konsulting 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 Biztech Konsulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biztech Konsulting has no effect on the direction of GreenX Metals i.e., GreenX Metals and Biztech Konsulting go up and down completely randomly.
Pair Corralation between GreenX Metals and Biztech Konsulting
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Biztech Konsulting. But the stock apears to be less risky and, when comparing its historical volatility, GreenX Metals is 2.59 times less risky than Biztech Konsulting. The stock trades about -0.12 of its potential returns per unit of risk. The Biztech Konsulting SA is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Biztech Konsulting SA on September 14, 2024 and sell it today you would earn a total of 2.00 from holding Biztech Konsulting SA or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
GreenX Metals vs. Biztech Konsulting SA
Performance |
| Timeline |
| GreenX Metals |
| Biztech Konsulting |
GreenX Metals and Biztech Konsulting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Biztech Konsulting
The main advantage of trading using opposite GreenX Metals and Biztech Konsulting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Biztech Konsulting 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 Biztech Konsulting will offset losses from the drop in Biztech Konsulting's long position.| GreenX Metals vs. LSI Software SA | GreenX Metals vs. ING Bank lski | GreenX Metals vs. Inter Cars SA | GreenX Metals vs. Noble Financials SA |
| Biztech Konsulting vs. Mlk Foods Public | Biztech Konsulting vs. GreenX Metals | Biztech Konsulting vs. M Food SA | Biztech Konsulting vs. Movie Games 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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