Correlation Between GREENX METALS and AOYAMA TRADING
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and AOYAMA TRADING 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 AOYAMA TRADING 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 AOYAMA TRADING, you can compare the effects of market volatilities on GREENX METALS and AOYAMA TRADING 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 AOYAMA TRADING. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and AOYAMA TRADING.
Diversification Opportunities for GREENX METALS and AOYAMA TRADING
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GREENX and AOYAMA is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and AOYAMA TRADING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOYAMA TRADING 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 AOYAMA TRADING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOYAMA TRADING has no effect on the direction of GREENX METALS i.e., GREENX METALS and AOYAMA TRADING go up and down completely randomly.
Pair Corralation between GREENX METALS and AOYAMA TRADING
Assuming the 90 days trading horizon GREENX METALS is expected to generate 4.0 times less return on investment than AOYAMA TRADING. In addition to that, GREENX METALS is 1.03 times more volatile than AOYAMA TRADING. It trades about 0.02 of its total potential returns per unit of risk. AOYAMA TRADING is currently generating about 0.08 per unit of volatility. If you would invest 309.00 in AOYAMA TRADING on October 11, 2024 and sell it today you would earn a total of 1,031 from holding AOYAMA TRADING or generate 333.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
GREENX METALS LTD vs. AOYAMA TRADING
Performance |
| Timeline |
| GREENX METALS LTD |
| AOYAMA TRADING |
GREENX METALS and AOYAMA TRADING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and AOYAMA TRADING
The main advantage of trading using opposite GREENX METALS and AOYAMA TRADING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, AOYAMA TRADING 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 AOYAMA TRADING will offset losses from the drop in AOYAMA TRADING'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 |
| AOYAMA TRADING vs. MOLSON RS BEVERAGE | AOYAMA TRADING vs. WT OFFSHORE | AOYAMA TRADING vs. Molson Coors Beverage | AOYAMA TRADING vs. China Resources Beer |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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