Correlation Between GreenX Metals and HUTCHMED China
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and HUTCHMED China 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 HUTCHMED China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and HUTCHMED China, you can compare the effects of market volatilities on GreenX Metals and HUTCHMED China 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 HUTCHMED China. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and HUTCHMED China.
Diversification Opportunities for GreenX Metals and HUTCHMED China
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GreenX and HUTCHMED is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and HUTCHMED China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUTCHMED China 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 HUTCHMED China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUTCHMED China has no effect on the direction of GreenX Metals i.e., GreenX Metals and HUTCHMED China go up and down completely randomly.
Pair Corralation between GreenX Metals and HUTCHMED China
Assuming the 90 days trading horizon GreenX Metals is expected to generate 0.46 times more return on investment than HUTCHMED China. However, GreenX Metals is 2.2 times less risky than HUTCHMED China. It trades about 0.35 of its potential returns per unit of risk. HUTCHMED China is currently generating about 0.01 per unit of risk. If you would invest 3,400 in GreenX Metals on October 24, 2024 and sell it today you would earn a total of 450.00 from holding GreenX Metals or generate 13.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
GreenX Metals vs. HUTCHMED China
Performance |
Timeline |
GreenX Metals |
HUTCHMED China |
GreenX Metals and HUTCHMED China Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GreenX Metals and HUTCHMED China
The main advantage of trading using opposite GreenX Metals and HUTCHMED China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, HUTCHMED China 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 HUTCHMED China will offset losses from the drop in HUTCHMED China's long position.GreenX Metals vs. Givaudan SA | GreenX Metals vs. Antofagasta PLC | GreenX Metals vs. Ferrexpo PLC | GreenX Metals vs. Atalaya Mining |
HUTCHMED China vs. GreenX Metals | HUTCHMED China vs. Monks Investment Trust | HUTCHMED China vs. Beeks Trading | HUTCHMED China vs. AMG Advanced Metallurgical |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |