Correlation Between Japan Asia and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Japan Asia 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 Japan Asia and GREENX METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Japan Asia Investment and GREENX METALS LTD, you can compare the effects of market volatilities on Japan Asia 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 Japan Asia with a short position of GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Asia and GREENX METALS.
Diversification Opportunities for Japan Asia and GREENX METALS
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Japan and GREENX is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Japan Asia Investment and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD and Japan Asia 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 Japan Asia Investment 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 LTD has no effect on the direction of Japan Asia i.e., Japan Asia and GREENX METALS go up and down completely randomly.
Pair Corralation between Japan Asia and GREENX METALS
Assuming the 90 days horizon Japan Asia Investment is expected to generate 0.32 times more return on investment than GREENX METALS. However, Japan Asia Investment is 3.13 times less risky than GREENX METALS. It trades about -0.06 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about -0.06 per unit of risk. If you would invest 133.00 in Japan Asia Investment on September 13, 2024 and sell it today you would lose (3.00) from holding Japan Asia Investment or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Japan Asia Investment vs. GREENX METALS LTD
Performance |
| Timeline |
| Japan Asia Investment |
| GREENX METALS LTD |
Japan Asia and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Japan Asia and GREENX METALS
The main advantage of trading using opposite Japan Asia and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Japan Asia 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's long position.| Japan Asia vs. Ameriprise Financial | Japan Asia vs. Ares Management Corp | Japan Asia vs. Superior Plus Corp | Japan Asia vs. SIVERS SEMICONDUCTORS AB |
| GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. SIVERS SEMICONDUCTORS AB | GREENX METALS vs. Norsk Hydro ASA | GREENX METALS vs. Reliance Steel Aluminum |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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