Correlation Between GREENX METALS and CSX
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and CSX 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 CSX 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 CSX Corporation, you can compare the effects of market volatilities on GREENX METALS and CSX 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 CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and CSX.
Diversification Opportunities for GREENX METALS and CSX
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GREENX and CSX is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation 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 CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of GREENX METALS i.e., GREENX METALS and CSX go up and down completely randomly.
Pair Corralation between GREENX METALS and CSX
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 3.25 times more return on investment than CSX. However, GREENX METALS is 3.25 times more volatile than CSX Corporation. It trades about -0.05 of its potential returns per unit of risk. CSX Corporation is currently generating about -0.23 per unit of risk. If you would invest 42.00 in GREENX METALS LTD on September 15, 2024 and sell it today you would lose (3.00) from holding GREENX METALS LTD or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. CSX Corp.
Performance |
| Timeline |
| GREENX METALS LTD |
| CSX Corporation |
GREENX METALS and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and CSX
The main advantage of trading using opposite GREENX METALS and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Norsk Hydro ASA | GREENX METALS vs. Reliance Steel Aluminum |
| CSX vs. GRIFFIN MINING LTD | CSX vs. Taiwan Semiconductor Manufacturing | CSX vs. GREENX METALS LTD | CSX vs. Elmos Semiconductor SE |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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