Correlation Between MFF Capital and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both MFF Capital 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 MFF Capital and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFF Capital Investments and GreenX Metals, you can compare the effects of market volatilities on MFF Capital 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 MFF Capital with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFF Capital and GreenX Metals.
Diversification Opportunities for MFF Capital and GreenX Metals
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MFF and GreenX is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding MFF Capital Investments and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and MFF Capital 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 MFF Capital Investments 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 MFF Capital i.e., MFF Capital and GreenX Metals go up and down completely randomly.
Pair Corralation between MFF Capital and GreenX Metals
Assuming the 90 days trading horizon MFF Capital Investments is expected to generate 0.57 times more return on investment than GreenX Metals. However, MFF Capital Investments is 1.77 times less risky than GreenX Metals. It trades about 0.34 of its potential returns per unit of risk. GreenX Metals is currently generating about 0.13 per unit of risk. If you would invest 420.00 in MFF Capital Investments on September 25, 2024 and sell it today you would earn a total of 45.00 from holding MFF Capital Investments or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFF Capital Investments vs. GreenX Metals
Performance |
| Timeline |
| MFF Capital Investments |
| GreenX Metals |
MFF Capital and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFF Capital and GreenX Metals
The main advantage of trading using opposite MFF Capital and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFF Capital 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.| MFF Capital vs. EVE Health Group | MFF Capital vs. Fisher Paykel Healthcare | MFF Capital vs. Regis Healthcare | MFF Capital vs. Sonic Healthcare |
| GreenX Metals vs. Ainsworth Game Technology | GreenX Metals vs. Black Rock Mining | GreenX Metals vs. Aristocrat Leisure | GreenX Metals vs. Truscott Mining Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets |