Correlation Between INDO RAMA and GREENX METALS

Can any of the company-specific risk be diversified away by investing in both INDO RAMA 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 INDO RAMA and GREENX METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INDO RAMA SYNTHETIC and GREENX METALS LTD, you can compare the effects of market volatilities on INDO RAMA 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 INDO RAMA with a short position of GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of INDO RAMA and GREENX METALS.

Diversification Opportunities for INDO RAMA and GREENX METALS

0.0

Correlation Coefficient

INDO RAMA  GREENX METALS

Pay attention - limited upside

The 3 months correlation between INDO and GREENX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INDO RAMA SYNTHETIC 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 INDO RAMA 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 INDO RAMA SYNTHETIC 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 INDO RAMA i.e., INDO RAMA and GREENX METALS go up and down completely randomly.

Pair Corralation between INDO RAMA and GREENX METALS

Assuming the 90 days trading horizon INDO RAMA SYNTHETIC is expected to under-perform the GREENX METALS. But the stock apears to be less risky and, when comparing its historical volatility, INDO RAMA SYNTHETIC is 2.23 times less risky than GREENX METALS. The stock trades about -0.02 of its potential returns per unit of risk. The GREENX METALS LTD is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  60.00  in GREENX METALS LTD on October 4, 2024 and sell it today you would lose (19.00) from holding GREENX METALS LTD or give up 31.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

INDO RAMA SYNTHETIC  vs.  GREENX METALS LTD

INDO RAMA SYNTHETIC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INDO RAMA SYNTHETIC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, INDO RAMA is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

GREENX METALS LTD

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GREENX METALS LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, GREENX METALS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with INDO RAMA and GREENX METALS

The main advantage of trading using opposite INDO RAMA and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INDO RAMA 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.

The idea behind INDO RAMA SYNTHETIC and GREENX METALS LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.