Correlation Between GreenX Metals and Fintech SA

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

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

Diversification Opportunities for GreenX Metals and Fintech SA

-0.01

Correlation Coefficient

GreenX Metals  Fintech SA

Good diversification

The 3 months correlation between GreenX and Fintech is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Fintech SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fintech SA 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 Fintech SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fintech SA has no effect on the direction of GreenX Metals i.e., GreenX Metals and Fintech SA go up and down completely randomly.

Pair Corralation between GreenX Metals and Fintech SA

Assuming the 90 days trading horizon GreenX Metals is expected to generate 12.68 times less return on investment than Fintech SA. But when comparing it to its historical volatility, GreenX Metals is 2.04 times less risky than Fintech SA. It trades about 0.01 of its potential returns per unit of risk. Fintech SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  7.98  in Fintech SA on April 24, 2025 and sell it today you would earn a total of  0.38  from holding Fintech SA or generate 4.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

GreenX Metals  vs.  Fintech SA

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. Even with relatively invariable basic indicators, GreenX Metals is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Fintech SA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fintech SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Fintech SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with GreenX Metals and Fintech SA

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

The idea behind GreenX Metals and Fintech SA 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.