Correlation Between GREENX METALS and CENTRICA ADR

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

Diversification Opportunities for GREENX METALS and CENTRICA ADR

0.0

Correlation Coefficient

GREENX METALS  CENTRICA ADR

Pay attention - limited upside

The 3 months correlation between GREENX and CENTRICA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and CENTRICA ADR NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRICA ADR NEW 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 CENTRICA ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRICA ADR NEW has no effect on the direction of GREENX METALS i.e., GREENX METALS and CENTRICA ADR go up and down completely randomly.

Pair Corralation between GREENX METALS and CENTRICA ADR

If you would invest  38.00  in GREENX METALS LTD on September 13, 2024 and sell it today you would earn a total of  3.00  from holding GREENX METALS LTD or generate 7.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GREENX METALS LTD  vs.  CENTRICA ADR NEW

GREENX METALS LTD

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in GREENX METALS LTD are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, GREENX METALS reported solid returns over the last few months and may actually be approaching a breakup point.

CENTRICA ADR NEW

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days CENTRICA ADR NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CENTRICA ADR is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GREENX METALS and CENTRICA ADR

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

The idea behind GREENX METALS LTD and CENTRICA ADR NEW 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.