Correlation Between GreenX Metals and Tyson Foods
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Tyson Foods 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 Tyson Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Tyson Foods Cl, you can compare the effects of market volatilities on GreenX Metals and Tyson Foods 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 Tyson Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Tyson Foods.
Diversification Opportunities for GreenX Metals and Tyson Foods
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and Tyson is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Tyson Foods Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tyson Foods Cl 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 Tyson Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tyson Foods Cl has no effect on the direction of GreenX Metals i.e., GreenX Metals and Tyson Foods go up and down completely randomly.
Pair Corralation between GreenX Metals and Tyson Foods
Assuming the 90 days trading horizon GreenX Metals is expected to generate 2.86 times more return on investment than Tyson Foods. However, GreenX Metals is 2.86 times more volatile than Tyson Foods Cl. It trades about -0.02 of its potential returns per unit of risk. Tyson Foods Cl is currently generating about -0.49 per unit of risk. If you would invest 3,450 in GreenX Metals on September 24, 2024 and sell it today you would lose (50.00) from holding GreenX Metals or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Tyson Foods Cl
Performance |
| Timeline |
| GreenX Metals |
| Tyson Foods Cl |
GreenX Metals and Tyson Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Tyson Foods
The main advantage of trading using opposite GreenX Metals and Tyson Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Tyson Foods 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 Tyson Foods will offset losses from the drop in Tyson Foods' long position.| GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Ferrexpo PLC | GreenX Metals vs. Atalaya Mining |
| Tyson Foods vs. Panther Metals PLC | Tyson Foods vs. GreenX Metals | Tyson Foods vs. McEwen Mining | Tyson Foods vs. Mindflair 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |