Correlation Between GreenX Metals and M Food
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and M Food 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 M Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and M Food SA, you can compare the effects of market volatilities on GreenX Metals and M Food 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 M Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and M Food.
Diversification Opportunities for GreenX Metals and M Food
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GreenX and MFD is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and M Food SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M Food 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 M Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Food SA has no effect on the direction of GreenX Metals i.e., GreenX Metals and M Food go up and down completely randomly.
Pair Corralation between GreenX Metals and M Food
Assuming the 90 days trading horizon GreenX Metals is expected to generate 0.67 times more return on investment than M Food. However, GreenX Metals is 1.5 times less risky than M Food. It trades about -0.04 of its potential returns per unit of risk. M Food SA is currently generating about -0.07 per unit of risk. If you would invest 235.00 in GreenX Metals on September 3, 2024 and sell it today you would lose (53.00) from holding GreenX Metals or give up 22.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
GreenX Metals vs. M Food SA
Performance |
| Timeline |
| GreenX Metals |
| M Food SA |
GreenX Metals and M Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and M Food
The main advantage of trading using opposite GreenX Metals and M Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, M Food 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 M Food will offset losses from the drop in M Food's long position.| GreenX Metals vs. Asseco Business Solutions | GreenX Metals vs. Kogeneracja SA | GreenX Metals vs. Asseco South Eastern | GreenX Metals vs. Movie Games SA |
| M Food vs. Asseco Business Solutions | M Food vs. Kogeneracja SA | M Food vs. Asseco South Eastern | M Food 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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