Correlation Between GreenX Metals and Answear SA

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Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Answear 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 Answear 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 Answear SA, you can compare the effects of market volatilities on GreenX Metals and Answear 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 Answear SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Answear SA.

Diversification Opportunities for GreenX Metals and Answear SA

GreenXAnswearDiversified AwayGreenXAnswearDiversified Away100%
0.43
  Correlation Coefficient

Very weak diversification

The 3 months correlation between GreenX and Answear is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Answear SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Answear 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 Answear SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Answear SA has no effect on the direction of GreenX Metals i.e., GreenX Metals and Answear SA go up and down completely randomly.

Pair Corralation between GreenX Metals and Answear SA

Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Answear SA. But the stock apears to be less risky and, when comparing its historical volatility, GreenX Metals is 1.3 times less risky than Answear SA. The stock trades about -0.1 of its potential returns per unit of risk. The Answear SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  2,720  in Answear SA on November 30, 2024 and sell it today you would lose (45.00) from holding Answear SA or give up 1.65% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

GreenX Metals  vs.  Answear SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015202530
JavaScript chart by amCharts 3.21.15GRX ANR
       Timeline  
GreenX Metals 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in GreenX Metals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, GreenX Metals may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.71.81.922.1
Answear SA 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Answear SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Answear SA may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2526272829

GreenX Metals and Answear SA Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.4-5.54-3.69-1.830.01.893.85.727.64 0.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15GRX ANR
       Returns  

Pair Trading with GreenX Metals and Answear SA

The main advantage of trading using opposite GreenX Metals and Answear SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Answear 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 Answear SA will offset losses from the drop in Answear SA's long position.
The idea behind GreenX Metals and Answear SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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