Correlation Between Adventus Mining and Green Technology

Can any of the company-specific risk be diversified away by investing in both Adventus Mining and Green Technology 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 Adventus Mining and Green Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Adventus Mining and Green Technology Metals, you can compare the effects of market volatilities on Adventus Mining and Green Technology 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 Adventus Mining with a short position of Green Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adventus Mining and Green Technology.

Diversification Opportunities for Adventus Mining and Green Technology

0.0

Correlation Coefficient

Adventus Mining  Green Technology

Pay attention - limited upside

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

Pair Corralation between Adventus Mining and Green Technology

If you would invest  4.50  in Green Technology Metals on December 22, 2024 and sell it today you would lose (1.20) from holding Green Technology Metals or give up 26.67% of portfolio value over 90 days.

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

Adventus Mining  vs.  Green Technology Metals

Adventus Mining

Risk-Adjusted Performance

Very Weak

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

Green Technology Metals

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Green Technology Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, Green Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Adventus Mining and Green Technology

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

The idea behind Adventus Mining and Green Technology 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.