Correlation Between GREENX METALS and Graham Holdings
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Graham Holdings 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 Graham Holdings 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 Graham Holdings Co, you can compare the effects of market volatilities on GREENX METALS and Graham Holdings 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 Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Graham Holdings.
Diversification Opportunities for GREENX METALS and Graham Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between GREENX and Graham is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 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 Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of GREENX METALS i.e., GREENX METALS and Graham Holdings go up and down completely randomly.
Pair Corralation between GREENX METALS and Graham Holdings
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the Graham Holdings. In addition to that, GREENX METALS is 2.18 times more volatile than Graham Holdings Co. It trades about -0.03 of its total potential returns per unit of risk. Graham Holdings Co is currently generating about 0.1 per unit of volatility. If you would invest 67,670 in Graham Holdings Co on September 3, 2024 and sell it today you would earn a total of 20,830 from holding Graham Holdings Co or generate 30.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Graham Holdings Co
Performance |
| Timeline |
| GREENX METALS LTD |
| Graham Holdings |
GREENX METALS and Graham Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Graham Holdings
The main advantage of trading using opposite GREENX METALS and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' long position.| GREENX METALS vs. CORONGLRES CDIS101 | GREENX METALS vs. AJ LUCAS GROUP | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. NMI Holdings |
| Graham Holdings vs. Strategic Education | Graham Holdings vs. Laureate Education | Graham Holdings vs. COGNA EDUCACAO SPADR |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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