Correlation Between GREENX METALS and Trip Group
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Trip Group 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 Trip Group 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 Trip Group Limited, you can compare the effects of market volatilities on GREENX METALS and Trip Group 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 Trip Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Trip Group.
Diversification Opportunities for GREENX METALS and Trip Group
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GREENX and Trip is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Trip Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trip Group Limited 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 Trip Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trip Group Limited has no effect on the direction of GREENX METALS i.e., GREENX METALS and Trip Group go up and down completely randomly.
Pair Corralation between GREENX METALS and Trip Group
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 1.1 times more return on investment than Trip Group. However, GREENX METALS is 1.1 times more volatile than Trip Group Limited. It trades about 0.08 of its potential returns per unit of risk. Trip Group Limited is currently generating about -0.11 per unit of risk. If you would invest 41.00 in GREENX METALS LTD on November 30, 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 | 97.67% |
| Values | Daily Returns |
GREENX METALS LTD vs. Trip Group Limited
Performance |
| Timeline |
| GREENX METALS LTD |
| Trip Group Limited |
GREENX METALS and Trip Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Trip Group
The main advantage of trading using opposite GREENX METALS and Trip Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Trip Group 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 Trip Group will offset losses from the drop in Trip Group's long position.| GREENX METALS vs. Japan Asia Investment | GREENX METALS vs. PennyMac Mortgage Investment | GREENX METALS vs. JLF INVESTMENT | GREENX METALS vs. MidCap Financial Investment |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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