Correlation Between Green Technology and Giga Metals
Can any of the company-specific risk be diversified away by investing in both Green Technology and Giga Metals 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 Green Technology and Giga Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Technology Metals and Giga Metals, you can compare the effects of market volatilities on Green Technology and Giga Metals 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 Green Technology with a short position of Giga Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Technology and Giga Metals.
Diversification Opportunities for Green Technology and Giga Metals
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Green and Giga is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Green Technology Metals and Giga Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giga Metals and Green Technology 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 Green Technology Metals are associated (or correlated) with Giga Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giga Metals has no effect on the direction of Green Technology i.e., Green Technology and Giga Metals go up and down completely randomly.
Pair Corralation between Green Technology and Giga Metals
Assuming the 90 days horizon Green Technology Metals is expected to generate 3.84 times more return on investment than Giga Metals. However, Green Technology is 3.84 times more volatile than Giga Metals. It trades about 0.01 of its potential returns per unit of risk. Giga Metals is currently generating about -0.02 per unit of risk. If you would invest 58.00 in Green Technology Metals on August 29, 2024 and sell it today you would lose (53.19) from holding Green Technology Metals or give up 91.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 13.49% |
| Values | Daily Returns |
Green Technology Metals vs. Giga Metals
Performance |
| Timeline |
| Green Technology Metals |
| Giga Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Green Technology and Giga Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Technology and Giga Metals
The main advantage of trading using opposite Green Technology and Giga Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Technology position performs unexpectedly, Giga Metals 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 Giga Metals will offset losses from the drop in Giga Metals' long position.| Green Technology vs. Lake Resources NL | Green Technology vs. Arizona Lithium Limited | Green Technology vs. Sayona Mining Limited | Green Technology vs. Argosy Minerals Limited |
| Giga Metals vs. Canada Nickel | Giga Metals vs. Giga Metals Corp | Giga Metals vs. Talon Metals Corp | Giga Metals vs. FPX Nickel 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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