Correlation Between GreenX Metals and Atome Energy

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

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

Diversification Opportunities for GreenX Metals and Atome Energy

-0.79

Correlation Coefficient

GreenX Metals  Atome Energy

Pay attention - limited upside

The 3 months correlation between GreenX and Atome is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Atome Energy PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atome Energy PLC 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 Atome Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atome Energy PLC has no effect on the direction of GreenX Metals i.e., GreenX Metals and Atome Energy go up and down completely randomly.

Pair Corralation between GreenX Metals and Atome Energy

Assuming the 90 days trading horizon GreenX Metals is expected to generate 46.86 times less return on investment than Atome Energy. But when comparing it to its historical volatility, GreenX Metals is 1.35 times less risky than Atome Energy. It trades about 0.0 of its potential returns per unit of risk. Atome Energy PLC is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  4,100  in Atome Energy PLC on April 21, 2025 and sell it today you would earn a total of  1,250  from holding Atome Energy PLC or generate 30.49% return on investment over 90 days.

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

GreenX Metals  vs.  Atome Energy PLC

GreenX Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days GreenX Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, GreenX Metals is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Atome Energy PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atome Energy PLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Atome Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GreenX Metals and Atome Energy

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

The idea behind GreenX Metals and Atome Energy PLC 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.