Correlation Between GREENX METALS and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and FAST RETAIL 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 FAST RETAIL 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 FAST RETAIL ADR, you can compare the effects of market volatilities on GREENX METALS and FAST RETAIL 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 FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and FAST RETAIL.
Diversification Opportunities for GREENX METALS and FAST RETAIL
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GREENX and FAST is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR 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 FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of GREENX METALS i.e., GREENX METALS and FAST RETAIL go up and down completely randomly.
Pair Corralation between GREENX METALS and FAST RETAIL
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the FAST RETAIL. In addition to that, GREENX METALS is 2.12 times more volatile than FAST RETAIL ADR. It trades about -0.17 of its total potential returns per unit of risk. FAST RETAIL ADR is currently generating about 0.15 per unit of volatility. If you would invest 2,980 in FAST RETAIL ADR on September 1, 2024 and sell it today you would earn a total of 180.00 from holding FAST RETAIL ADR or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. FAST RETAIL ADR
Performance |
| Timeline |
| GREENX METALS LTD |
| FAST RETAIL ADR |
GREENX METALS and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and FAST RETAIL
The main advantage of trading using opposite GREENX METALS and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, FAST RETAIL 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 FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech | GREENX METALS vs. SIVERS SEMICONDUCTORS AB |
| FAST RETAIL vs. AOYAMA TRADING | FAST RETAIL vs. Global Fashion Group | FAST RETAIL vs. Superior Plus Corp | FAST RETAIL vs. NMI Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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