Correlation Between RBG Holdings and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both RBG Holdings 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 RBG Holdings and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RBG Holdings PLC and GreenX Metals, you can compare the effects of market volatilities on RBG Holdings 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 RBG Holdings with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of RBG Holdings and GreenX Metals.
Diversification Opportunities for RBG Holdings and GreenX Metals
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between RBG and GreenX is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding RBG Holdings PLC and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and RBG Holdings 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 RBG Holdings 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 RBG Holdings i.e., RBG Holdings and GreenX Metals go up and down completely randomly.
Pair Corralation between RBG Holdings and GreenX Metals
Assuming the 90 days trading horizon RBG Holdings PLC is expected to under-perform the GreenX Metals. In addition to that, RBG Holdings is 2.06 times more volatile than GreenX Metals. It trades about -0.08 of its total potential returns per unit of risk. GreenX Metals is currently generating about -0.02 per unit of volatility. If you would invest 4,550 in GreenX Metals on September 4, 2024 and sell it today you would lose (1,000.00) from holding GreenX Metals or give up 21.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
RBG Holdings PLC vs. GreenX Metals
Performance |
| Timeline |
| RBG Holdings PLC |
| GreenX Metals |
RBG Holdings and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RBG Holdings and GreenX Metals
The main advantage of trading using opposite RBG Holdings and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RBG Holdings 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.| RBG Holdings vs. Planet Fitness Cl | RBG Holdings vs. Primary Health Properties | RBG Holdings vs. Seche Environnement SA | RBG Holdings vs. Spire Healthcare Group |
| GreenX Metals vs. Lindsell Train Investment | GreenX Metals vs. Fresenius Medical Care | GreenX Metals vs. Various Eateries PLC | GreenX Metals vs. Cizzle Biotechnology Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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