Correlation Between Live Motion and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Live Motion 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 Live Motion and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Live Motion Games and GreenX Metals, you can compare the effects of market volatilities on Live Motion 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 Live Motion with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Live Motion and GreenX Metals.
Diversification Opportunities for Live Motion and GreenX Metals
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Live and GreenX is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Live Motion Games and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Live Motion 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 Live Motion Games 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 Live Motion i.e., Live Motion and GreenX Metals go up and down completely randomly.
Pair Corralation between Live Motion and GreenX Metals
Assuming the 90 days trading horizon Live Motion Games is expected to under-perform the GreenX Metals. But the stock apears to be less risky and, when comparing its historical volatility, Live Motion Games is 1.01 times less risky than GreenX Metals. The stock trades about -0.37 of its potential returns per unit of risk. The GreenX Metals is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest 201.00 in GreenX Metals on August 28, 2024 and sell it today you would lose (27.00) from holding GreenX Metals or give up 13.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Live Motion Games vs. GreenX Metals
Performance |
| Timeline |
| Live Motion Games |
| GreenX Metals |
Live Motion and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Live Motion and GreenX Metals
The main advantage of trading using opposite Live Motion and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Live Motion 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.| Live Motion vs. Asseco Business Solutions | Live Motion vs. Detalion Games SA | Live Motion vs. Asseco South Eastern | Live Motion vs. Movie Games SA |
| GreenX Metals vs. Jastrzebska Spotka Weglowa | GreenX Metals vs. Asseco Business Solutions | GreenX Metals vs. Detalion Games SA | GreenX Metals vs. Asseco South Eastern |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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