Correlation Between Kitwave Group and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Kitwave Group and GreenX 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 Kitwave Group and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kitwave Group PLC and GreenX Metals, you can compare the effects of market volatilities on Kitwave Group and GreenX 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 Kitwave Group with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kitwave Group and GreenX Metals.
Diversification Opportunities for Kitwave Group and GreenX Metals
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kitwave and GreenX is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kitwave Group PLC and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Kitwave Group 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 Kitwave Group PLC are associated (or correlated) with GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Kitwave Group i.e., Kitwave Group and GreenX Metals go up and down completely randomly.
Pair Corralation between Kitwave Group and GreenX Metals
Assuming the 90 days trading horizon Kitwave Group PLC is expected to generate 0.83 times more return on investment than GreenX Metals. However, Kitwave Group PLC is 1.2 times less risky than GreenX Metals. It trades about 0.03 of its potential returns per unit of risk. GreenX Metals is currently generating about 0.0 per unit of risk. If you would invest 25,726 in Kitwave Group PLC on August 27, 2024 and sell it today you would earn a total of 6,174 from holding Kitwave Group PLC or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Kitwave Group PLC vs. GreenX Metals
Performance |
| Timeline |
| Kitwave Group PLC |
| GreenX Metals |
Kitwave Group and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kitwave Group and GreenX Metals
The main advantage of trading using opposite Kitwave Group and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kitwave Group position performs unexpectedly, GreenX 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Kitwave Group vs. GreenX Metals | Kitwave Group vs. Infrastrutture Wireless Italiane | Kitwave Group vs. Blackrock World Mining | Kitwave Group vs. Hochschild Mining plc |
| GreenX Metals vs. Spirent Communications plc | GreenX Metals vs. European Metals Holdings | GreenX Metals vs. Zoom Video Communications | GreenX Metals vs. Cornish 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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