Correlation Between GREENX METALS and Haier Smart
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Haier Smart 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 Haier Smart 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 Haier Smart Home, you can compare the effects of market volatilities on GREENX METALS and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Haier Smart.
Diversification Opportunities for GREENX METALS and Haier Smart
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GREENX and Haier is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of GREENX METALS i.e., GREENX METALS and Haier Smart go up and down completely randomly.
Pair Corralation between GREENX METALS and Haier Smart
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 1.51 times more return on investment than Haier Smart. However, GREENX METALS is 1.51 times more volatile than Haier Smart Home. It trades about 0.23 of its potential returns per unit of risk. Haier Smart Home is currently generating about 0.05 per unit of risk. If you would invest 41.00 in GREENX METALS LTD on October 11, 2024 and sell it today you would earn a total of 4.00 from holding GREENX METALS LTD or generate 9.76% 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. Haier Smart Home
Performance |
| Timeline |
| GREENX METALS LTD |
| Haier Smart Home |
GREENX METALS and Haier Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Haier Smart
The main advantage of trading using opposite GREENX METALS and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.| GREENX METALS vs. Chesapeake Utilities | GREENX METALS vs. Addus HomeCare | GREENX METALS vs. BRIT AMER TOBACCO | GREENX METALS vs. Corporate Office Properties |
| Haier Smart vs. American Homes 4 | Haier Smart vs. ADDUS HOMECARE | Haier Smart vs. GREENX METALS LTD | Haier Smart vs. CITY OFFICE REIT |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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