Correlation Between Transport International and GREENX METALS

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

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

Diversification Opportunities for Transport International and GREENX METALS

-0.16

Correlation Coefficient

Transport International  GREENX METALS

Good diversification

The 3 months correlation between Transport and GREENX is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Transport International Holdin 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 Transport International 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 Transport International Holdings 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 Transport International i.e., Transport International and GREENX METALS go up and down completely randomly.

Pair Corralation between Transport International and GREENX METALS

Assuming the 90 days horizon Transport International Holdings is expected to generate 0.76 times more return on investment than GREENX METALS. However, Transport International Holdings is 1.31 times less risky than GREENX METALS. It trades about 0.05 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about 0.03 per unit of risk. If you would invest  86.00  in Transport International Holdings on April 24, 2025 and sell it today you would earn a total of  6.00  from holding Transport International Holdings or generate 6.98% return on investment over 90 days.

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

Transport International Holdin  vs.  GREENX METALS LTD

Transport International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Transport International Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Transport International may actually be approaching a critical reversion point that can send shares even higher in August 2025.

GREENX METALS LTD

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in GREENX METALS LTD are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain primary indicators, GREENX METALS may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Transport International and GREENX METALS

The main advantage of trading using opposite Transport International and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transport International 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 Transport International Holdings 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.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.