Correlation Between GREENX METALS and Agricultural Bank
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Agricultural Bank 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 Agricultural Bank 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 Agricultural Bank of, you can compare the effects of market volatilities on GREENX METALS and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Agricultural Bank.
Diversification Opportunities for GREENX METALS and Agricultural Bank
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GREENX and Agricultural is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of GREENX METALS i.e., GREENX METALS and Agricultural Bank go up and down completely randomly.
Pair Corralation between GREENX METALS and Agricultural Bank
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 2.99 times more return on investment than Agricultural Bank. However, GREENX METALS is 2.99 times more volatile than Agricultural Bank of. It trades about 0.04 of its potential returns per unit of risk. Agricultural Bank of is currently generating about 0.01 per unit of risk. If you would invest 45.00 in GREENX METALS LTD on November 8, 2024 and sell it today you would earn a total of 1.00 from holding GREENX METALS LTD or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Agricultural Bank of
Performance |
| Timeline |
| GREENX METALS LTD |
| Agricultural Bank |
GREENX METALS and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Agricultural Bank
The main advantage of trading using opposite GREENX METALS and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| GREENX METALS vs. Perseus Mining Limited | GREENX METALS vs. Molson Coors Beverage | GREENX METALS vs. GRIFFIN MINING LTD | GREENX METALS vs. Tyson Foods |
| Agricultural Bank vs. Check Point Software | Agricultural Bank vs. Kingdee International Software | Agricultural Bank vs. Cognizant Technology Solutions | Agricultural Bank vs. UPDATE SOFTWARE |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |