Correlation Between GREENX METALS and Carrefour
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Carrefour 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 Carrefour 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 Carrefour SA, you can compare the effects of market volatilities on GREENX METALS and Carrefour 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 Carrefour. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Carrefour.
Diversification Opportunities for GREENX METALS and Carrefour
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between GREENX and Carrefour is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Carrefour SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carrefour SA 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 Carrefour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carrefour SA has no effect on the direction of GREENX METALS i.e., GREENX METALS and Carrefour go up and down completely randomly.
Pair Corralation between GREENX METALS and Carrefour
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Carrefour. In addition to that, GREENX METALS is 2.24 times more volatile than Carrefour SA. It trades about -0.17 of its total potential returns per unit of risk. Carrefour SA is currently generating about 0.01 per unit of volatility. If you would invest 1,456 in Carrefour SA on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Carrefour SA or generate 0.14% 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. Carrefour SA
Performance |
| Timeline |
| GREENX METALS LTD |
| Carrefour SA |
GREENX METALS and Carrefour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Carrefour
The main advantage of trading using opposite GREENX METALS and Carrefour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Carrefour 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 Carrefour will offset losses from the drop in Carrefour's long position.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Talanx AG |
| Carrefour vs. GRIFFIN MINING LTD | Carrefour vs. Gladstone Investment | Carrefour vs. GREENX METALS LTD | Carrefour vs. Clean Energy Fuels |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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