Correlation Between GREENX METALS and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and BANK HANDLOWY 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 BANK HANDLOWY 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 BANK HANDLOWY, you can compare the effects of market volatilities on GREENX METALS and BANK HANDLOWY 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 BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and BANK HANDLOWY.
Diversification Opportunities for GREENX METALS and BANK HANDLOWY
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between GREENX and BANK is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY 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 BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of GREENX METALS i.e., GREENX METALS and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between GREENX METALS and BANK HANDLOWY
Assuming the 90 days trading horizon GREENX METALS is expected to generate 86.29 times less return on investment than BANK HANDLOWY. In addition to that, GREENX METALS is 1.25 times more volatile than BANK HANDLOWY. It trades about 0.0 of its total potential returns per unit of risk. BANK HANDLOWY is currently generating about 0.06 per unit of volatility. If you would invest 1,255 in BANK HANDLOWY on September 23, 2024 and sell it today you would earn a total of 840.00 from holding BANK HANDLOWY or generate 66.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. BANK HANDLOWY
Performance |
| Timeline |
| GREENX METALS LTD |
| BANK HANDLOWY |
GREENX METALS and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and BANK HANDLOWY
The main advantage of trading using opposite GREENX METALS and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| GREENX METALS vs. Shin Etsu Chemical Co | GREENX METALS vs. GALENA MINING LTD | GREENX METALS vs. Quaker Chemical | GREENX METALS vs. Silicon Motion Technology |
| BANK HANDLOWY vs. GREENX METALS LTD | BANK HANDLOWY vs. Zijin Mining Group | BANK HANDLOWY vs. LION ONE METALS | BANK HANDLOWY vs. GRIFFIN MINING LTD |
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 Stocks Directory module to find actively traded stocks across global markets.
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