Correlation Between Anglesey Mining and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Anglesey Mining and GreenX Metals 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 Anglesey Mining and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anglesey Mining and GreenX Metals, you can compare the effects of market volatilities on Anglesey Mining and GreenX Metals 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 Anglesey Mining with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anglesey Mining and GreenX Metals.
Diversification Opportunities for Anglesey Mining and GreenX Metals
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anglesey and GreenX is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Anglesey Mining and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Anglesey Mining 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 Anglesey Mining are associated (or correlated) with GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Anglesey Mining i.e., Anglesey Mining and GreenX Metals go up and down completely randomly.
Pair Corralation between Anglesey Mining and GreenX Metals
Assuming the 90 days trading horizon Anglesey Mining is expected to under-perform the GreenX Metals. But the stock apears to be less risky and, when comparing its historical volatility, Anglesey Mining is 1.08 times less risky than GreenX Metals. The stock trades about -0.26 of its potential returns per unit of risk. The GreenX Metals is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 4,200 in GreenX Metals on September 2, 2024 and sell it today you would lose (500.00) from holding GreenX Metals or give up 11.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anglesey Mining vs. GreenX Metals
Performance |
| Timeline |
| Anglesey Mining |
| GreenX Metals |
Anglesey Mining and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anglesey Mining and GreenX Metals
The main advantage of trading using opposite Anglesey Mining and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anglesey Mining position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Anglesey Mining vs. Givaudan SA | Anglesey Mining vs. Antofagasta PLC | Anglesey Mining vs. Centamin PLC | Anglesey Mining vs. Atalaya Mining |
| GreenX Metals vs. Spirent Communications plc | GreenX Metals vs. Gamma Communications PLC | GreenX Metals vs. AMG Advanced Metallurgical | GreenX Metals vs. British American Tobacco |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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