Correlation Between Oxford Metrics and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Oxford Metrics 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 Oxford Metrics and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oxford Metrics plc and GreenX Metals, you can compare the effects of market volatilities on Oxford Metrics 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 Oxford Metrics with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oxford Metrics and GreenX Metals.
Diversification Opportunities for Oxford Metrics and GreenX Metals
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oxford and GreenX is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Oxford Metrics plc and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Oxford Metrics 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 Oxford Metrics 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 Oxford Metrics i.e., Oxford Metrics and GreenX Metals go up and down completely randomly.
Pair Corralation between Oxford Metrics and GreenX Metals
Assuming the 90 days trading horizon Oxford Metrics plc is expected to generate 1.12 times more return on investment than GreenX Metals. However, Oxford Metrics is 1.12 times more volatile than GreenX Metals. It trades about 0.25 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.3 per unit of risk. If you would invest 5,500 in Oxford Metrics plc on August 30, 2024 and sell it today you would earn a total of 920.00 from holding Oxford Metrics plc or generate 16.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Oxford Metrics plc vs. GreenX Metals
Performance |
| Timeline |
| Oxford Metrics plc |
| GreenX Metals |
Oxford Metrics and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oxford Metrics and GreenX Metals
The main advantage of trading using opposite Oxford Metrics and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oxford Metrics 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.| Oxford Metrics vs. Samsung Electronics Co | Oxford Metrics vs. Samsung Electronics Co | Oxford Metrics vs. Hyundai Motor | Oxford Metrics vs. Toyota Motor Corp |
| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Centamin PLC | GreenX Metals vs. Atalaya Mining |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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