Correlation Between GREENX METALS and USS
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and USS 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 USS 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 USS Co, you can compare the effects of market volatilities on GREENX METALS and USS 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 USS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and USS.
Diversification Opportunities for GREENX METALS and USS
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GREENX and USS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and USS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USS Co 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 USS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USS Co has no effect on the direction of GREENX METALS i.e., GREENX METALS and USS go up and down completely randomly.
Pair Corralation between GREENX METALS and USS
Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 3.27 times more return on investment than USS. However, GREENX METALS is 3.27 times more volatile than USS Co. It trades about 0.02 of its potential returns per unit of risk. USS Co is currently generating about 0.03 per unit of risk. If you would invest 49.00 in GREENX METALS LTD on October 13, 2024 and sell it today you would lose (6.00) from holding GREENX METALS LTD or give up 12.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. USS Co
Performance |
| Timeline |
| GREENX METALS LTD |
| USS Co |
GREENX METALS and USS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and USS
The main advantage of trading using opposite GREENX METALS and USS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, USS 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 USS will offset losses from the drop in USS's long position.| GREENX METALS vs. ZURICH INSURANCE GROUP | GREENX METALS vs. Molina Healthcare | GREENX METALS vs. Zurich Insurance Group | GREENX METALS vs. EPSILON HEALTHCARE 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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