Correlation Between Stellar and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Stellar 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 Stellar and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellar and GreenX Metals, you can compare the effects of market volatilities on Stellar 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 Stellar with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar and GreenX Metals.
Diversification Opportunities for Stellar and GreenX Metals
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stellar and GreenX is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Stellar and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Stellar 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 Stellar 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 Stellar i.e., Stellar and GreenX Metals go up and down completely randomly.
Pair Corralation between Stellar and GreenX Metals
Assuming the 90 days trading horizon Stellar is expected to under-perform the GreenX Metals. In addition to that, Stellar is 2.97 times more volatile than GreenX Metals. It trades about -0.01 of its total potential returns per unit of risk. GreenX Metals is currently generating about 0.38 per unit of volatility. If you would invest 3,450 in GreenX Metals on November 2, 2024 and sell it today you would earn a total of 600.00 from holding GreenX Metals or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stellar vs. GreenX Metals
Performance |
| Timeline |
| Stellar |
| GreenX Metals |
Stellar and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellar and GreenX Metals
The main advantage of trading using opposite Stellar and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar 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.The idea behind Stellar and GreenX Metals pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GreenX Metals vs. International Consolidated Airlines | GreenX Metals vs. Veolia Environnement VE | GreenX Metals vs. Iron Mountain | GreenX Metals vs. Centaur Media |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |