Correlation Between GreenX Metals and Enea SA
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Enea 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 Enea 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 Enea SA, you can compare the effects of market volatilities on GreenX Metals and Enea 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 Enea SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Enea SA.
Diversification Opportunities for GreenX Metals and Enea SA
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between GreenX and Enea is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Enea SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enea 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 Enea SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enea SA has no effect on the direction of GreenX Metals i.e., GreenX Metals and Enea SA go up and down completely randomly.
Pair Corralation between GreenX Metals and Enea SA
Assuming the 90 days trading horizon GreenX Metals is expected to under-perform the Enea SA. In addition to that, GreenX Metals is 1.26 times more volatile than Enea SA. It trades about -0.03 of its total potential returns per unit of risk. Enea SA is currently generating about 0.05 per unit of volatility. If you would invest 887.00 in Enea SA on August 29, 2024 and sell it today you would earn a total of 319.00 from holding Enea SA or generate 35.96% 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. Enea SA
Performance |
| Timeline |
| GreenX Metals |
| Enea SA |
GreenX Metals and Enea SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and Enea SA
The main advantage of trading using opposite GreenX Metals and Enea SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Enea 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 Enea SA will offset losses from the drop in Enea SA's long position.| GreenX Metals vs. Jastrzebska Spotka Weglowa | GreenX Metals vs. Asseco Business Solutions | GreenX Metals vs. Detalion Games SA | GreenX Metals vs. CFI Holding SA |
| Enea SA vs. 3R Games SA | Enea SA vs. Pyramid Games SA | Enea SA vs. GreenX Metals | Enea SA vs. Movie Games 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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