Correlation Between Liontrust Asset and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Liontrust Asset 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 Liontrust Asset and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Liontrust Asset Management and GreenX Metals, you can compare the effects of market volatilities on Liontrust Asset 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 Liontrust Asset with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liontrust Asset and GreenX Metals.
Diversification Opportunities for Liontrust Asset and GreenX Metals
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Liontrust and GreenX is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Liontrust Asset Management and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Liontrust Asset 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 Liontrust Asset Management 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 Liontrust Asset i.e., Liontrust Asset and GreenX Metals go up and down completely randomly.
Pair Corralation between Liontrust Asset and GreenX Metals
Assuming the 90 days trading horizon Liontrust Asset Management is expected to generate 1.31 times more return on investment than GreenX Metals. However, Liontrust Asset is 1.31 times more volatile than GreenX Metals. It trades about 0.32 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.08 per unit of risk. If you would invest 40,914 in Liontrust Asset Management on September 12, 2024 and sell it today you would earn a total of 7,986 from holding Liontrust Asset Management or generate 19.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liontrust Asset Management vs. GreenX Metals
Performance |
| Timeline |
| Liontrust Asset Mana |
| GreenX Metals |
Liontrust Asset and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liontrust Asset and GreenX Metals
The main advantage of trading using opposite Liontrust Asset and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liontrust Asset 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.| Liontrust Asset vs. Sealed Air Corp | Liontrust Asset vs. Cardinal Health | Liontrust Asset vs. Porvair plc | Liontrust Asset vs. Inspiration Healthcare Group |
| GreenX Metals vs. GoldMining | GreenX Metals vs. Liontrust Asset Management | GreenX Metals vs. Jacquet Metal Service | GreenX Metals vs. Southwest Airlines Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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