Correlation Between Komercni Banka and GreenX Metals

Can any of the company-specific risk be diversified away by investing in both Komercni Banka 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 Komercni Banka and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Komercni Banka and GreenX Metals, you can compare the effects of market volatilities on Komercni Banka 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 Komercni Banka with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komercni Banka and GreenX Metals.

Diversification Opportunities for Komercni Banka and GreenX Metals

0.0

Correlation Coefficient

Komercni Banka  GreenX Metals

Pay attention - limited upside

The 3 months correlation between Komercni and GreenX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Komercni Banka and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Komercni Banka 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 Komercni Banka 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 Komercni Banka i.e., Komercni Banka and GreenX Metals go up and down completely randomly.

Pair Corralation between Komercni Banka and GreenX Metals

If you would invest  3,600  in GreenX Metals on September 12, 2024 and sell it today you would lose (50.00) from holding GreenX Metals or give up 1.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Komercni Banka  vs.  GreenX Metals

Komercni Banka

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Komercni Banka has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Komercni Banka is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

GreenX Metals

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GreenX Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, GreenX Metals is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Komercni Banka and GreenX Metals

The main advantage of trading using opposite Komercni Banka and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komercni Banka 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 Komercni Banka 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.

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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.