Correlation Between Green Technology and St Georges
Can any of the company-specific risk be diversified away by investing in both Green Technology and St Georges 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 St Georges 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 St Georges Eco Mining Corp, you can compare the effects of market volatilities on Green Technology and St Georges 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 St Georges. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Technology and St Georges.
Diversification Opportunities for Green Technology and St Georges
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Green and SXOOF is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Green Technology Metals and St Georges Eco Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on St Georges Eco 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 St Georges. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of St Georges Eco has no effect on the direction of Green Technology i.e., Green Technology and St Georges go up and down completely randomly.
Pair Corralation between Green Technology and St Georges
Assuming the 90 days horizon Green Technology Metals is expected to generate 0.76 times more return on investment than St Georges. However, Green Technology Metals is 1.31 times less risky than St Georges. It trades about -0.02 of its potential returns per unit of risk. St Georges Eco Mining Corp is currently generating about -0.4 per unit of risk. If you would invest 5.20 in Green Technology Metals on November 5, 2024 and sell it today you would lose (0.12) from holding Green Technology Metals or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Green Technology Metals vs. St Georges Eco Mining Corp
Performance |
| Timeline |
| Green Technology Metals |
| St Georges Eco |
Green Technology and St Georges Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Technology and St Georges
The main advantage of trading using opposite Green Technology and St Georges positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Technology position performs unexpectedly, St Georges 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 St Georges will offset losses from the drop in St Georges' 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 |
| St Georges vs. Artemis Resources | St Georges vs. Atco Mining | St Georges vs. American Lithium Minerals | St Georges vs. Surge Battery Metals |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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