Correlation Between GREENX METALS and Aqua Metals

Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Aqua 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 GREENX METALS and Aqua Metals 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 Aqua Metals, you can compare the effects of market volatilities on GREENX METALS and Aqua 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 GREENX METALS with a short position of Aqua Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Aqua Metals.

Diversification Opportunities for GREENX METALS and Aqua Metals

0.54

Correlation Coefficient

GREENX METALS  Aqua Metals

Very weak diversification

The 3 months correlation between GREENX and Aqua is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Aqua Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqua Metals 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 Aqua Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqua Metals has no effect on the direction of GREENX METALS i.e., GREENX METALS and Aqua Metals go up and down completely randomly.

Pair Corralation between GREENX METALS and Aqua Metals

If you would invest  41.00  in GREENX METALS LTD on October 9, 2024 and sell it today you would earn a total of  1.00  from holding GREENX METALS LTD or generate 2.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

GREENX METALS LTD  vs.  Aqua Metals

GREENX METALS LTD

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days GREENX METALS LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Aqua Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aqua Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with GREENX METALS and Aqua Metals

The main advantage of trading using opposite GREENX METALS and Aqua Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Aqua 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 Aqua Metals will offset losses from the drop in Aqua Metals' long position.

The idea behind GREENX METALS LTD and Aqua Metals 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.