Correlation Between Saule Technologies and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Saule Technologies 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 Saule Technologies and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saule Technologies SA and GreenX Metals, you can compare the effects of market volatilities on Saule Technologies 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 Saule Technologies with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saule Technologies and GreenX Metals.
Diversification Opportunities for Saule Technologies and GreenX Metals
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Saule and GreenX is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Saule Technologies SA and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Saule Technologies 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 Saule Technologies SA 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 Saule Technologies i.e., Saule Technologies and GreenX Metals go up and down completely randomly.
Pair Corralation between Saule Technologies and GreenX Metals
Assuming the 90 days trading horizon Saule Technologies SA is expected to under-perform the GreenX Metals. But the stock apears to be less risky and, when comparing its historical volatility, Saule Technologies SA is 1.15 times less risky than GreenX Metals. The stock trades about -0.04 of its potential returns per unit of risk. The GreenX Metals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 166.00 in GreenX Metals on August 30, 2024 and sell it today you would earn a total of 9.00 from holding GreenX Metals or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saule Technologies SA vs. GreenX Metals
Performance |
| Timeline |
| Saule Technologies |
| GreenX Metals |
Saule Technologies and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saule Technologies and GreenX Metals
The main advantage of trading using opposite Saule Technologies and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saule Technologies 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.| Saule Technologies vs. Clean Carbon Energy | Saule Technologies vs. ADX | Saule Technologies vs. Agroliga Group PLC | Saule Technologies vs. Vee SA |
| GreenX Metals vs. Jastrzebska Spotka Weglowa | GreenX Metals vs. Asseco Business Solutions | GreenX Metals vs. Detalion Games SA | GreenX Metals vs. CFI Holding SA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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