Correlation Between Grupa HRC and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Grupa HRC and GreenX Metals 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 Grupa HRC and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupa HRC SA and GreenX Metals, you can compare the effects of market volatilities on Grupa HRC and GreenX Metals 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 Grupa HRC with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupa HRC and GreenX Metals.
Diversification Opportunities for Grupa HRC and GreenX Metals
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupa and GreenX is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Grupa HRC SA and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Grupa HRC 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 Grupa HRC SA are associated (or correlated) with GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Grupa HRC i.e., Grupa HRC and GreenX Metals go up and down completely randomly.
Pair Corralation between Grupa HRC and GreenX Metals
Assuming the 90 days trading horizon Grupa HRC SA is expected to under-perform the GreenX Metals. In addition to that, Grupa HRC is 1.57 times more volatile than GreenX Metals. It trades about -0.31 of its total potential returns per unit of risk. GreenX Metals is currently generating about -0.26 per unit of volatility. If you would invest 212.00 in GreenX Metals on September 4, 2024 and sell it today you would lose (33.00) from holding GreenX Metals or give up 15.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Grupa HRC SA vs. GreenX Metals
Performance |
| Timeline |
| Grupa HRC SA |
| GreenX Metals |
Grupa HRC and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupa HRC and GreenX Metals
The main advantage of trading using opposite Grupa HRC and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupa HRC position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Grupa HRC vs. GreenX Metals | Grupa HRC vs. TEN SQUARE GAMES | Grupa HRC vs. 3R Games SA | Grupa HRC vs. Carlson Investments SA |
| GreenX Metals vs. Asseco Business Solutions | GreenX Metals vs. Kogeneracja SA | GreenX Metals vs. Asseco South Eastern | GreenX Metals 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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