Correlation Between GREENX METALS and Amcor Plc
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Amcor Plc 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 GREENX METALS and Amcor Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Amcor plc, you can compare the effects of market volatilities on GREENX METALS and Amcor Plc 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 GREENX METALS with a short position of Amcor Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Amcor Plc.
Diversification Opportunities for GREENX METALS and Amcor Plc
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GREENX and Amcor is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Amcor plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amcor plc and GREENX METALS 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 GREENX METALS LTD are associated (or correlated) with Amcor Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amcor plc has no effect on the direction of GREENX METALS i.e., GREENX METALS and Amcor Plc go up and down completely randomly.
Pair Corralation between GREENX METALS and Amcor Plc
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Amcor Plc. In addition to that, GREENX METALS is 2.78 times more volatile than Amcor plc. It trades about -0.27 of its total potential returns per unit of risk. Amcor plc is currently generating about 0.32 per unit of volatility. If you would invest 906.00 in Amcor plc on September 2, 2024 and sell it today you would earn a total of 84.00 from holding Amcor plc or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Amcor plc
Performance |
| Timeline |
| GREENX METALS LTD |
| Amcor plc |
GREENX METALS and Amcor Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Amcor Plc
The main advantage of trading using opposite GREENX METALS and Amcor Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Amcor Plc 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 Amcor Plc will offset losses from the drop in Amcor Plc's long position.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech | GREENX METALS vs. SIVERS SEMICONDUCTORS AB |
| Amcor Plc vs. GREENX METALS LTD | Amcor Plc vs. ADRIATIC METALS LS 013355 | Amcor Plc vs. Mobilezone Holding AG | Amcor Plc vs. Spirent Communications plc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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