Correlation Between GREENX METALS and H FARM

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Can any of the company-specific risk be diversified away by investing in both GREENX METALS and H FARM 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 H FARM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and H FARM SPA, you can compare the effects of market volatilities on GREENX METALS and H FARM 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 H FARM. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and H FARM.

Diversification Opportunities for GREENX METALS and H FARM

GREENX5JQDiversified AwayGREENX5JQDiversified Away100%
0.5
  Correlation Coefficient

Very weak diversification

The 3 months correlation between GREENX and 5JQ is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and H FARM SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on H FARM SPA 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 LTD are associated (or correlated) with H FARM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of H FARM SPA has no effect on the direction of GREENX METALS i.e., GREENX METALS and H FARM go up and down completely randomly.

Pair Corralation between GREENX METALS and H FARM

Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 0.59 times more return on investment than H FARM. However, GREENX METALS LTD is 1.68 times less risky than H FARM. It trades about 0.05 of its potential returns per unit of risk. H FARM SPA is currently generating about 0.02 per unit of risk. If you would invest  44.00  in GREENX METALS LTD on October 28, 2024 and sell it today you would earn a total of  4.00  from holding GREENX METALS LTD or generate 9.09% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

GREENX METALS LTD  vs.  H FARM SPA

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-1001020
JavaScript chart by amCharts 3.21.155PMA 5JQ
       Timeline  
GREENX METALS LTD 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in GREENX METALS LTD are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak primary indicators, GREENX METALS reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.380.40.420.440.460.480.5
H FARM SPA 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in H FARM SPA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, H FARM may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.10.110.120.130.140.150.16

GREENX METALS and H FARM Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-13.32-9.97-6.63-3.290.03.386.8110.2513.68 0.0100.0150.020
JavaScript chart by amCharts 3.21.155PMA 5JQ
       Returns  

Pair Trading with GREENX METALS and H FARM

The main advantage of trading using opposite GREENX METALS and H FARM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, H FARM 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 H FARM will offset losses from the drop in H FARM's long position.
The idea behind GREENX METALS LTD and H FARM SPA 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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