Correlation Between GreenX Metals and SUNEX SA
Can any of the company-specific risk be diversified away by investing in both GreenX Metals and SUNEX 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 SUNEX 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 SUNEX SA, you can compare the effects of market volatilities on GreenX Metals and SUNEX 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 SUNEX SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and SUNEX SA.
Diversification Opportunities for GreenX Metals and SUNEX SA
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GreenX and SUNEX is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and SUNEX SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNEX 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 SUNEX SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNEX SA has no effect on the direction of GreenX Metals i.e., GreenX Metals and SUNEX SA go up and down completely randomly.
Pair Corralation between GreenX Metals and SUNEX SA
Assuming the 90 days trading horizon GreenX Metals is expected to generate 1.85 times less return on investment than SUNEX SA. But when comparing it to its historical volatility, GreenX Metals is 4.29 times less risky than SUNEX SA. It trades about 0.14 of its potential returns per unit of risk. SUNEX SA is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 620.00 in SUNEX SA on October 9, 2024 and sell it today you would earn a total of 20.00 from holding SUNEX SA or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenX Metals vs. SUNEX SA
Performance |
| Timeline |
| GreenX Metals |
| SUNEX SA |
GreenX Metals and SUNEX SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenX Metals and SUNEX SA
The main advantage of trading using opposite GreenX Metals and SUNEX SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, SUNEX 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 SUNEX SA will offset losses from the drop in SUNEX SA's long position.| GreenX Metals vs. PZ Cormay SA | GreenX Metals vs. MCI Management SA | GreenX Metals vs. PMPG Polskie Media | GreenX Metals vs. Monnari Trade SA |
| SUNEX SA vs. GreenX Metals | SUNEX SA vs. Skyline Investment SA | SUNEX SA vs. Inter Cars SA | SUNEX SA vs. Quantum 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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