Correlation Between GREENX METALS and AMAG Austria

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

Diversification Opportunities for GREENX METALS and AMAG Austria

0.2

Correlation Coefficient

GREENX METALS  AMAG Austria

Modest diversification

The 3 months correlation between GREENX and AMAG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and AMAG Austria Metall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAG Austria Metall 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 AMAG Austria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAG Austria Metall has no effect on the direction of GREENX METALS i.e., GREENX METALS and AMAG Austria go up and down completely randomly.

Pair Corralation between GREENX METALS and AMAG Austria

Assuming the 90 days trading horizon GREENX METALS LTD is expected to generate 2.71 times more return on investment than AMAG Austria. However, GREENX METALS is 2.71 times more volatile than AMAG Austria Metall. It trades about 0.0 of its potential returns per unit of risk. AMAG Austria Metall is currently generating about -0.02 per unit of risk. If you would invest  43.00  in GREENX METALS LTD on April 23, 2025 and sell it today you would lose (3.00) from holding GREENX METALS LTD or give up 6.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

GREENX METALS LTD  vs.  AMAG Austria Metall

GREENX METALS LTD

Risk-Adjusted Performance

Very Weak

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

AMAG Austria Metall

Risk-Adjusted Performance

Very Weak

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

Pair Trading with GREENX METALS and AMAG Austria

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

The idea behind GREENX METALS LTD and AMAG Austria Metall 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.