Correlation Between ANDRADA MINING and GREENX METALS

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

By analyzing existing cross correlation between ANDRADA MINING LTD and GREENX METALS LTD, you can compare the effects of market volatilities on ANDRADA MINING and GREENX 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 ANDRADA MINING with a short position of GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANDRADA MINING and GREENX METALS.

Diversification Opportunities for ANDRADA MINING and GREENX METALS

0.53

Correlation Coefficient

ANDRADA MINING  GREENX METALS

Very weak diversification

The 3 months correlation between ANDRADA and GREENX is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding ANDRADA MINING LTD and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD and ANDRADA 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 ANDRADA MINING LTD are associated (or correlated) with GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of ANDRADA MINING i.e., ANDRADA MINING and GREENX METALS go up and down completely randomly.

Pair Corralation between ANDRADA MINING and GREENX METALS

Assuming the 90 days horizon ANDRADA MINING LTD is expected to under-perform the GREENX METALS. In addition to that, ANDRADA MINING is 1.34 times more volatile than GREENX METALS LTD. It trades about -0.01 of its total potential returns per unit of risk. GREENX METALS LTD is currently generating about 0.01 per unit of volatility. If you would invest  60.00  in GREENX METALS LTD on April 19, 2025 and sell it today you would lose (17.00) from holding GREENX METALS LTD or give up 28.33% of portfolio value over 90 days.

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

ANDRADA MINING LTD  vs.  GREENX METALS LTD

ANDRADA MINING LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ANDRADA MINING LTD are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ANDRADA MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ANDRADA MINING and GREENX METALS

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

The idea behind ANDRADA MINING LTD and GREENX METALS LTD 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.