Correlation Between GREENX METALS and China Eastern
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and China Eastern 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 China Eastern 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 China Eastern Airlines, you can compare the effects of market volatilities on GREENX METALS and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and China Eastern.
Diversification Opportunities for GREENX METALS and China Eastern
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GREENX and China is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of GREENX METALS i.e., GREENX METALS and China Eastern go up and down completely randomly.
Pair Corralation between GREENX METALS and China Eastern
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 1.19 times more return on investment than China Eastern. However, GREENX METALS is 1.19 times more volatile than China Eastern Airlines. It trades about 0.02 of its potential returns per unit of risk. China Eastern Airlines is currently generating about 0.01 per unit of risk. If you would invest 48.00 in GREENX METALS LTD on October 26, 2024 and sell it today you would earn a total of 1.00 from holding GREENX METALS LTD or generate 2.08% 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. China Eastern Airlines
Performance |
| Timeline |
| GREENX METALS LTD |
| China Eastern Airlines |
GREENX METALS and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and China Eastern
The main advantage of trading using opposite GREENX METALS and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| GREENX METALS vs. Sunstone Hotel Investors | GREENX METALS vs. DALATA HOTEL | GREENX METALS vs. MELIA HOTELS | GREENX METALS vs. HYATT HOTELS A |
| China Eastern vs. Autohome ADR | China Eastern vs. FLOW TRADERS LTD | China Eastern vs. OFFICE DEPOT | China Eastern vs. Haverty Furniture Companies |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |