Correlation Between IXUP and Greentech Metals
Can any of the company-specific risk be diversified away by investing in both IXUP and Greentech 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 IXUP and Greentech Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IXUP and Greentech Metals, you can compare the effects of market volatilities on IXUP and Greentech 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 IXUP with a short position of Greentech Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of IXUP and Greentech Metals.
Diversification Opportunities for IXUP and Greentech Metals
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IXUP and Greentech is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding IXUP and Greentech Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greentech Metals and IXUP 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 IXUP are associated (or correlated) with Greentech Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greentech Metals has no effect on the direction of IXUP i.e., IXUP and Greentech Metals go up and down completely randomly.
Pair Corralation between IXUP and Greentech Metals
Assuming the 90 days trading horizon IXUP is expected to generate 1.6 times more return on investment than Greentech Metals. However, IXUP is 1.6 times more volatile than Greentech Metals. It trades about 0.1 of its potential returns per unit of risk. Greentech Metals is currently generating about 0.06 per unit of risk. If you would invest 0.90 in IXUP on November 27, 2024 and sell it today you would earn a total of 0.10 from holding IXUP or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IXUP vs. Greentech Metals
Performance |
| Timeline |
| IXUP |
| Greentech Metals |
IXUP and Greentech Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IXUP and Greentech Metals
The main advantage of trading using opposite IXUP and Greentech Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IXUP position performs unexpectedly, Greentech 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 Greentech Metals will offset losses from the drop in Greentech Metals' long position.| IXUP vs. BKI Investment | IXUP vs. Navigator Global Investments | IXUP vs. Dalaroo Metals | IXUP vs. Polymetals Resources |
| Greentech Metals vs. Northern Star Resources | Greentech Metals vs. Alcoa Inc | Greentech Metals vs. Evolution Mining | Greentech Metals vs. Bluescope Steel |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |