Correlation Between SUNEX SA and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both SUNEX SA 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 SUNEX SA and GreenX Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SUNEX SA and GreenX Metals, you can compare the effects of market volatilities on SUNEX SA 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 SUNEX SA with a short position of GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUNEX SA and GreenX Metals.
Diversification Opportunities for SUNEX SA and GreenX Metals
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SUNEX and GreenX is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding SUNEX SA and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and SUNEX SA 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 SUNEX 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 SUNEX SA i.e., SUNEX SA and GreenX Metals go up and down completely randomly.
Pair Corralation between SUNEX SA and GreenX Metals
Assuming the 90 days trading horizon SUNEX SA is expected to generate 4.29 times more return on investment than GreenX Metals. However, SUNEX SA is 4.29 times more volatile than GreenX Metals. It trades about 0.06 of its potential returns per unit of risk. GreenX Metals is currently generating about 0.14 per unit of risk. 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 |
SUNEX SA vs. GreenX Metals
Performance |
| Timeline |
| SUNEX SA |
| GreenX Metals |
SUNEX SA and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUNEX SA and GreenX Metals
The main advantage of trading using opposite SUNEX SA and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUNEX SA 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.| SUNEX SA vs. GreenX Metals | SUNEX SA vs. Skyline Investment SA | SUNEX SA vs. Inter Cars SA | SUNEX SA vs. Quantum Software SA |
| GreenX Metals vs. PZ Cormay SA | GreenX Metals vs. MCI Management SA | GreenX Metals vs. PMPG Polskie Media | GreenX Metals vs. Monnari Trade 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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