Correlation Between GREENX METALS and SalMar ASA
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and SalMar ASA 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 SalMar ASA 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 SalMar ASA, you can compare the effects of market volatilities on GREENX METALS and SalMar ASA 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 SalMar ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and SalMar ASA.
Diversification Opportunities for GREENX METALS and SalMar ASA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GREENX and SalMar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and SalMar ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SalMar ASA 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 SalMar ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SalMar ASA has no effect on the direction of GREENX METALS i.e., GREENX METALS and SalMar ASA go up and down completely randomly.
Pair Corralation between GREENX METALS and SalMar ASA
Assuming the 90 days trading horizon GREENX METALS is expected to generate 2.02 times less return on investment than SalMar ASA. In addition to that, GREENX METALS is 1.08 times more volatile than SalMar ASA. It trades about 0.03 of its total potential returns per unit of risk. SalMar ASA is currently generating about 0.06 per unit of volatility. If you would invest 1,789 in SalMar ASA on September 4, 2024 and sell it today you would earn a total of 3,153 from holding SalMar ASA or generate 176.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. SalMar ASA
Performance |
| Timeline |
| GREENX METALS LTD |
| SalMar ASA |
GREENX METALS and SalMar ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and SalMar ASA
The main advantage of trading using opposite GREENX METALS and SalMar ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, SalMar ASA 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 SalMar ASA will offset losses from the drop in SalMar ASA's long position.| GREENX METALS vs. PICKN PAY STORES | GREENX METALS vs. HK Electric Investments | GREENX METALS vs. RETAIL FOOD GROUP | GREENX METALS vs. Zijin Mining Group |
| SalMar ASA vs. Food Life Companies | SalMar ASA vs. GREENX METALS LTD | SalMar ASA vs. Lion One Metals | SalMar ASA vs. Perseus Mining Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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