Correlation Between GreenX Metals and Asiamet Resources
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Asiamet Resources 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 Asiamet Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Asiamet Resources Limited, you can compare the effects of market volatilities on GreenX Metals and Asiamet Resources 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 Asiamet Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Asiamet Resources.
Diversification Opportunities for GreenX Metals and Asiamet Resources
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GreenX and Asiamet is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Asiamet Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiamet Resources 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 Asiamet Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiamet Resources has no effect on the direction of GreenX Metals i.e., GreenX Metals and Asiamet Resources go up and down completely randomly.
Pair Corralation between GreenX Metals and Asiamet Resources
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Asiamet Resources. But the stock apears to be less risky and, when comparing its historical volatility, GreenX Metals is 1.39 times less risky than Asiamet Resources. The stock trades about -0.03 of its potential returns per unit of risk. The Asiamet Resources Limited is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 80.00 in Asiamet Resources Limited on September 14, 2024 and sell it today you would lose (2.00) from holding Asiamet Resources Limited or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Asiamet Resources Limited
Performance |
| Timeline |
| GreenX Metals |
| Asiamet Resources |
GreenX Metals and Asiamet Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Asiamet Resources
The main advantage of trading using opposite GreenX Metals and Asiamet Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Asiamet Resources 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 Asiamet Resources will offset losses from the drop in Asiamet Resources' long position.| GreenX Metals vs. Sabien Technology Group | GreenX Metals vs. Albion Technology General | GreenX Metals vs. Zegona Communications Plc | GreenX Metals vs. Pfeiffer Vacuum Technology |
| Asiamet Resources vs. Silvercorp Metals | Asiamet Resources vs. GreenX Metals | Asiamet Resources vs. Panther Metals PLC | Asiamet Resources vs. European Metals Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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