Correlation Between GreenX Metals and Logintrade
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Logintrade 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 Logintrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Logintrade SA, you can compare the effects of market volatilities on GreenX Metals and Logintrade 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 Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Logintrade.
Diversification Opportunities for GreenX Metals and Logintrade
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and Logintrade is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade SA 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 Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of GreenX Metals i.e., GreenX Metals and Logintrade go up and down completely randomly.
Pair Corralation between GreenX Metals and Logintrade
Assuming the 90 days trading horizon GreenX Metals is expected to generate 0.94 times more return on investment than Logintrade. However, GreenX Metals is 1.06 times less risky than Logintrade. It trades about 0.15 of its potential returns per unit of risk. Logintrade SA is currently generating about -0.33 per unit of risk. If you would invest 183.00 in GreenX Metals on November 4, 2024 and sell it today you would earn a total of 17.00 from holding GreenX Metals or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
GreenX Metals vs. Logintrade SA
Performance |
| Timeline |
| GreenX Metals |
| Logintrade SA |
GreenX Metals and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Logintrade
The main advantage of trading using opposite GreenX Metals and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's long position.| GreenX Metals vs. Medicalg | GreenX Metals vs. Echo Investment SA | GreenX Metals vs. Quantum Software SA | GreenX Metals vs. Gremi Media SA |
| Logintrade vs. Banco Santander SA | Logintrade vs. UniCredit SpA | Logintrade vs. CEZ as | Logintrade vs. Polski Koncern Naftowy |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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