Correlation Between XLMedia PLC and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both XLMedia PLC 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 XLMedia PLC and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XLMedia PLC and GreenX Metals, you can compare the effects of market volatilities on XLMedia PLC 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 XLMedia PLC with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of XLMedia PLC and GreenX Metals.
Diversification Opportunities for XLMedia PLC and GreenX Metals
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between XLMedia and GreenX is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding XLMedia PLC and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and XLMedia PLC 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 XLMedia 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 XLMedia PLC i.e., XLMedia PLC and GreenX Metals go up and down completely randomly.
Pair Corralation between XLMedia PLC and GreenX Metals
Assuming the 90 days trading horizon XLMedia PLC is expected to generate 0.79 times more return on investment than GreenX Metals. However, XLMedia PLC is 1.27 times less risky than GreenX Metals. It trades about 0.11 of its potential returns per unit of risk. GreenX Metals is currently generating about 0.03 per unit of risk. If you would invest 1,000.00 in XLMedia PLC on August 30, 2024 and sell it today you would earn a total of 185.00 from holding XLMedia PLC or generate 18.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XLMedia PLC vs. GreenX Metals
Performance |
| Timeline |
| XLMedia PLC |
| GreenX Metals |
XLMedia PLC and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XLMedia PLC and GreenX Metals
The main advantage of trading using opposite XLMedia PLC and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XLMedia PLC 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.| XLMedia PLC vs. Walmart | XLMedia PLC vs. BYD Co | XLMedia PLC vs. Volkswagen AG | XLMedia PLC vs. Volkswagen AG Non Vtg |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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