Correlation Between Panther Metals and Global Net
Can any of the company-specific risk be diversified away by investing in both Panther Metals and Global Net 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 Panther Metals and Global Net into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panther Metals PLC and Global Net Lease, you can compare the effects of market volatilities on Panther Metals and Global Net 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 Panther Metals with a short position of Global Net. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panther Metals and Global Net.
Diversification Opportunities for Panther Metals and Global Net
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Panther and Global is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Panther Metals PLC and Global Net Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Net Lease and Panther Metals 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 Panther Metals PLC are associated (or correlated) with Global Net. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Net Lease has no effect on the direction of Panther Metals i.e., Panther Metals and Global Net go up and down completely randomly.
Pair Corralation between Panther Metals and Global Net
Assuming the 90 days trading horizon Panther Metals PLC is expected to generate 3.0 times more return on investment than Global Net. However, Panther Metals is 3.0 times more volatile than Global Net Lease. It trades about 0.04 of its potential returns per unit of risk. Global Net Lease is currently generating about -0.11 per unit of risk. If you would invest 10,750 in Panther Metals PLC on September 2, 2024 and sell it today you would earn a total of 750.00 from holding Panther Metals PLC or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panther Metals PLC vs. Global Net Lease
Performance |
| Timeline |
| Panther Metals PLC |
| Global Net Lease |
Panther Metals and Global Net Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panther Metals and Global Net
The main advantage of trading using opposite Panther Metals and Global Net positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panther Metals position performs unexpectedly, Global Net 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 Global Net will offset losses from the drop in Global Net's long position.| Panther Metals vs. Givaudan SA | Panther Metals vs. Antofagasta PLC | Panther Metals vs. Centamin PLC | Panther Metals vs. Atalaya Mining |
| Global Net vs. Waste Management | Global Net vs. PureTech Health plc | Global Net vs. Roper Technologies | Global Net vs. Coor Service Management |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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