Correlation Between GreenX Metals and Alior Bank
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Alior Bank 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 Alior Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Alior Bank SA, you can compare the effects of market volatilities on GreenX Metals and Alior Bank 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 Alior Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Alior Bank.
Diversification Opportunities for GreenX Metals and Alior Bank
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GreenX and Alior is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Alior Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alior Bank 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 Alior Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alior Bank SA has no effect on the direction of GreenX Metals i.e., GreenX Metals and Alior Bank go up and down completely randomly.
Pair Corralation between GreenX Metals and Alior Bank
Assuming the 90 days trading horizon GreenX Metals is expected to generate 2.07 times more return on investment than Alior Bank. However, GreenX Metals is 2.07 times more volatile than Alior Bank SA. It trades about 0.15 of its potential returns per unit of risk. Alior Bank SA is currently generating about 0.26 per unit of risk. If you would invest 183.00 in GreenX Metals on November 4, 2024 and sell it today you would earn a total of 17.00 from holding GreenX Metals or generate 9.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. Alior Bank SA
Performance |
| Timeline |
| GreenX Metals |
| Alior Bank SA |
GreenX Metals and Alior Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Alior Bank
The main advantage of trading using opposite GreenX Metals and Alior Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Alior Bank 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 Alior Bank will offset losses from the drop in Alior Bank's long position.| GreenX Metals vs. Medicalg | GreenX Metals vs. Echo Investment SA | GreenX Metals vs. Quantum Software SA | GreenX Metals vs. Gremi Media SA |
| Alior Bank vs. Quantum Software SA | Alior Bank vs. Cloud Technologies SA | Alior Bank vs. Monnari Trade SA | Alior Bank vs. Saule Technologies 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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