Correlation Between Resonance Health and Metals X

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

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

Diversification Opportunities for Resonance Health and Metals X

0.32

Correlation Coefficient

Resonance Health  Metals X

Weak diversification

The 3 months correlation between Resonance and Metals is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Resonance Health and Metals X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metals X and Resonance Health 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 Resonance Health are associated (or correlated) with Metals X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metals X has no effect on the direction of Resonance Health i.e., Resonance Health and Metals X go up and down completely randomly.

Pair Corralation between Resonance Health and Metals X

Assuming the 90 days trading horizon Resonance Health is expected to generate 2.69 times less return on investment than Metals X. In addition to that, Resonance Health is 1.46 times more volatile than Metals X. It trades about 0.03 of its total potential returns per unit of risk. Metals X is currently generating about 0.12 per unit of volatility. If you would invest  53.00  in Metals X on April 24, 2025 and sell it today you would earn a total of  12.00  from holding Metals X or generate 22.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Resonance Health  vs.  Metals X

Resonance Health

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Resonance Health are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Resonance Health may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Metals X

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Metals X are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Metals X unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Resonance Health and Metals X

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

The idea behind Resonance Health and Metals X 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.