Correlation Between GreenX Metals and AC SA
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and AC SA 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 AC SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and AC SA, you can compare the effects of market volatilities on GreenX Metals and AC SA 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 AC SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and AC SA.
Diversification Opportunities for GreenX Metals and AC SA
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and ACG is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and AC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AC SA 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 AC SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AC SA has no effect on the direction of GreenX Metals i.e., GreenX Metals and AC SA go up and down completely randomly.
Pair Corralation between GreenX Metals and AC SA
Assuming the 90 days trading horizon GreenX Metals is expected to generate 2.52 times more return on investment than AC SA. However, GreenX Metals is 2.52 times more volatile than AC SA. It trades about 0.02 of its potential returns per unit of risk. AC SA is currently generating about 0.02 per unit of risk. If you would invest 163.00 in GreenX Metals on September 3, 2024 and sell it today you would earn a total of 19.00 from holding GreenX Metals or generate 11.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. AC SA
Performance |
| Timeline |
| GreenX Metals |
| AC SA |
GreenX Metals and AC SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and AC SA
The main advantage of trading using opposite GreenX Metals and AC SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, AC SA 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 AC SA will offset losses from the drop in AC SA's long position.| GreenX Metals vs. Asseco Business Solutions | GreenX Metals vs. Detalion Games SA | GreenX Metals vs. Kogeneracja SA | GreenX Metals vs. Asseco South Eastern |
| AC SA vs. Creotech Instruments SA | AC SA vs. Quantum Software SA | AC SA vs. Mlk Foods Public | AC SA vs. LSI Software SA |
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 CEOs Directory module to screen CEOs from public companies around the world.
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