Correlation Between GreenX Metals and Aeon Metals

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

By analyzing existing cross correlation between GreenX Metals and Aeon Metals, you can compare the effects of market volatilities on GreenX Metals and Aeon 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 Aeon Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Aeon Metals.

Diversification Opportunities for GreenX Metals and Aeon Metals

0.0

Correlation Coefficient

GreenX Metals  Aeon Metals

Pay attention - limited upside

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

Pair Corralation between GreenX Metals and Aeon Metals

If you would invest  68.00  in GreenX Metals on December 29, 2024 and sell it today you would earn a total of  17.00  from holding GreenX Metals or generate 25.0% return on investment over 90 days.

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

GreenX Metals  vs.  Aeon Metals

GreenX Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GreenX Metals are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, GreenX Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Aeon Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aeon Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Aeon Metals is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with GreenX Metals and Aeon Metals

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

The idea behind GreenX Metals and Aeon 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.