Correlation Between Greenroc Mining and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Greenroc 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 Greenroc 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 Greenroc Mining PLC and GreenX Metals, you can compare the effects of market volatilities on Greenroc 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 Greenroc Mining with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenroc Mining and GreenX Metals.
Diversification Opportunities for Greenroc Mining and GreenX Metals
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenroc and GreenX is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Greenroc Mining PLC and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Greenroc 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 Greenroc Mining PLC 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 Greenroc Mining i.e., Greenroc Mining and GreenX Metals go up and down completely randomly.
Pair Corralation between Greenroc Mining and GreenX Metals
Assuming the 90 days trading horizon Greenroc Mining PLC is expected to generate 0.91 times more return on investment than GreenX Metals. However, Greenroc Mining PLC is 1.1 times less risky than GreenX Metals. It trades about 0.08 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.01 per unit of risk. If you would invest 135.00 in Greenroc Mining PLC on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Greenroc Mining PLC or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Greenroc Mining PLC vs. GreenX Metals
Performance |
| Timeline |
| Greenroc Mining PLC |
| GreenX Metals |
Greenroc Mining and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenroc Mining and GreenX Metals
The main advantage of trading using opposite Greenroc Mining and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenroc 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.| Greenroc Mining vs. Atalaya Mining | Greenroc Mining vs. Central Asia Metals | Greenroc Mining vs. Anglo Asian Mining | Greenroc Mining vs. Metals Exploration Plc |
| GreenX Metals vs. Atalaya Mining | GreenX Metals vs. Central Asia Metals | GreenX Metals vs. Anglo Asian Mining | GreenX Metals vs. Metals Exploration Plc |
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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