Correlation Between GREENX METALS and SUPER GROUP
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and SUPER 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 SUPER 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 SUPER GROUP LTD, you can compare the effects of market volatilities on GREENX METALS and SUPER 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 SUPER GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and SUPER GROUP.
Diversification Opportunities for GREENX METALS and SUPER GROUP
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GREENX and SUPER is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and SUPER GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER GROUP LTD 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 SUPER GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER GROUP LTD has no effect on the direction of GREENX METALS i.e., GREENX METALS and SUPER GROUP go up and down completely randomly.
Pair Corralation between GREENX METALS and SUPER GROUP
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the SUPER GROUP. In addition to that, GREENX METALS is 2.03 times more volatile than SUPER GROUP LTD. It trades about -0.17 of its total potential returns per unit of risk. SUPER GROUP LTD is currently generating about 0.08 per unit of volatility. If you would invest 119.00 in SUPER GROUP LTD on August 24, 2024 and sell it today you would earn a total of 4.00 from holding SUPER GROUP LTD or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
GREENX METALS LTD vs. SUPER GROUP LTD
Performance |
| Timeline |
| GREENX METALS LTD |
| SUPER GROUP LTD |
GREENX METALS and SUPER GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and SUPER GROUP
The main advantage of trading using opposite GREENX METALS and SUPER GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, SUPER 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 SUPER GROUP will offset losses from the drop in SUPER GROUP's long position.| GREENX METALS vs. PERENNIAL ENERGY HD 01 | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings | GREENX METALS vs. Origin Agritech |
| SUPER GROUP vs. IDP EDUCATION LTD | SUPER GROUP vs. Calibre Mining Corp | SUPER GROUP vs. KENNAMETAL INC | SUPER GROUP vs. GREENX METALS LTD |
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 Correlations module to find global opportunities by holding instruments from different markets.
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