Correlation Between GreenX Metals and AMP
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and AMP 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 AMP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and AMP, you can compare the effects of market volatilities on GreenX Metals and AMP 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 AMP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and AMP.
Diversification Opportunities for GreenX Metals and AMP
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GreenX and AMP is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and AMP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMP 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 are associated (or correlated) with AMP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMP has no effect on the direction of GreenX Metals i.e., GreenX Metals and AMP go up and down completely randomly.
Pair Corralation between GreenX Metals and AMP
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the AMP. In addition to that, GreenX Metals is 1.97 times more volatile than AMP. It trades about -0.27 of its total potential returns per unit of risk. AMP is currently generating about 0.3 per unit of volatility. If you would invest 145.00 in AMP on September 4, 2024 and sell it today you would earn a total of 13.00 from holding AMP or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. AMP
Performance |
| Timeline |
| GreenX Metals |
| AMP |
GreenX Metals and AMP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and AMP
The main advantage of trading using opposite GreenX Metals and AMP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, AMP 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 AMP will offset losses from the drop in AMP's long position.| GreenX Metals vs. Northern Star Resources | GreenX Metals vs. Sandfire Resources NL | GreenX Metals vs. Aneka Tambang Tbk |
| AMP vs. Macquarie Technology Group | AMP vs. Qbe Insurance Group | AMP vs. Treasury Wine Estates | AMP vs. Land Homes 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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