Correlation Between CAL MAINE and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both CAL MAINE 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 CAL MAINE and GREENX METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAL MAINE FOODS and GREENX METALS LTD, you can compare the effects of market volatilities on CAL MAINE 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 CAL MAINE with a short position of GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAL MAINE and GREENX METALS.
Diversification Opportunities for CAL MAINE and GREENX METALS
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CAL and GREENX is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding CAL MAINE FOODS and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD and CAL MAINE 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 CAL MAINE FOODS 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 LTD has no effect on the direction of CAL MAINE i.e., CAL MAINE and GREENX METALS go up and down completely randomly.
Pair Corralation between CAL MAINE and GREENX METALS
Assuming the 90 days trading horizon CAL MAINE FOODS is expected to generate 0.44 times more return on investment than GREENX METALS. However, CAL MAINE FOODS is 2.3 times less risky than GREENX METALS. It trades about 0.45 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about -0.21 per unit of risk. If you would invest 7,936 in CAL MAINE FOODS on September 4, 2024 and sell it today you would earn a total of 1,268 from holding CAL MAINE FOODS or generate 15.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CAL MAINE FOODS vs. GREENX METALS LTD
Performance |
| Timeline |
| CAL MAINE FOODS |
| GREENX METALS LTD |
CAL MAINE and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAL MAINE and GREENX METALS
The main advantage of trading using opposite CAL MAINE and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAL MAINE 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's long position.The idea behind CAL MAINE FOODS and GREENX METALS LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| GREENX METALS vs. PICKN PAY STORES | GREENX METALS vs. HK Electric Investments | GREENX METALS vs. RETAIL FOOD GROUP | GREENX METALS vs. Zijin Mining Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |