Correlation Between SMX Public and SMX Public

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

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

Diversification Opportunities for SMX Public and SMX Public

-0.05

Correlation Coefficient

SMX Public  SMX Public

Good diversification

The 3 months correlation between SMX and SMX is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SMX Public Limited and SMX Public Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMX Public Limited and SMX Public 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 SMX Public Limited are associated (or correlated) with SMX Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMX Public Limited has no effect on the direction of SMX Public i.e., SMX Public and SMX Public go up and down completely randomly.

Pair Corralation between SMX Public and SMX Public

Considering the 90-day investment horizon SMX Public Limited is expected to under-perform the SMX Public. But the stock apears to be less risky and, when comparing its historical volatility, SMX Public Limited is 6.52 times less risky than SMX Public. The stock trades about -0.08 of its potential returns per unit of risk. The SMX Public Limited is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  0.00  in SMX Public Limited on September 5, 2024 and sell it today you would earn a total of  0.98  from holding SMX Public Limited or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	76.56%
Values	Daily Returns

SMX Public Limited  vs.  SMX Public Limited

SMX Public Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SMX Public Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

SMX Public Limited

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SMX Public Limited are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, SMX Public showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SMX Public and SMX Public

The main advantage of trading using opposite SMX Public and SMX Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SMX Public position performs unexpectedly, SMX Public 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 SMX Public will offset losses from the drop in SMX Public's long position.

The idea behind SMX Public Limited and SMX Public Limited 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.