Correlation Between Investment Friends and GreenX Metals

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

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

Diversification Opportunities for Investment Friends and GreenX Metals

0.0

Correlation Coefficient

Investment Friends  GreenX Metals

Pay attention - limited upside

The 3 months correlation between Investment and GreenX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Investment Friends Capital and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals and Investment Friends 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 Investment Friends Capital 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 has no effect on the direction of Investment Friends i.e., Investment Friends and GreenX Metals go up and down completely randomly.

Pair Corralation between Investment Friends and GreenX Metals

If you would invest  189.00  in GreenX Metals on April 25, 2025 and sell it today you would lose (2.00) from holding GreenX Metals or give up 1.06% of portfolio value over 90 days.

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

Investment Friends Capital  vs.  GreenX Metals

Investment Friends

Risk-Adjusted Performance

Very Weak

Over the last 90 days Investment Friends Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Investment Friends is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

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.

Pair Trading with Investment Friends and GreenX Metals

The main advantage of trading using opposite Investment Friends and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Friends 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' long position.

The idea behind Investment Friends Capital and GreenX 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.