Correlation Between GREENX METALS and Rio Tinto
Can any of the company-specific risk be diversified away by investing in both GREENX METALS and Rio Tinto 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 Rio Tinto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and Rio Tinto Group, you can compare the effects of market volatilities on GREENX METALS and Rio Tinto 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 Rio Tinto. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and Rio Tinto.
Diversification Opportunities for GREENX METALS and Rio Tinto
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GREENX and Rio is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and Rio Tinto Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rio Tinto Group 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 LTD are associated (or correlated) with Rio Tinto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rio Tinto Group has no effect on the direction of GREENX METALS i.e., GREENX METALS and Rio Tinto go up and down completely randomly.
Pair Corralation between GREENX METALS and Rio Tinto
Assuming the 90 days trading horizon GREENX METALS is expected to generate 1.66 times less return on investment than Rio Tinto. In addition to that, GREENX METALS is 2.37 times more volatile than Rio Tinto Group. It trades about 0.03 of its total potential returns per unit of risk. Rio Tinto Group is currently generating about 0.11 per unit of volatility. If you would invest 5,349 in Rio Tinto Group on July 20, 2025 and sell it today you would earn a total of 458.00 from holding Rio Tinto Group or generate 8.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. Rio Tinto Group
Performance |
| Timeline |
| GREENX METALS LTD |
| Rio Tinto Group |
GREENX METALS and Rio Tinto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and Rio Tinto
The main advantage of trading using opposite GREENX METALS and Rio Tinto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS position performs unexpectedly, Rio Tinto 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 Rio Tinto will offset losses from the drop in Rio Tinto's long position.| GREENX METALS vs. CORONGLRES CDIS101 | GREENX METALS vs. MONGOLIAN MINING CRPREGS | GREENX METALS vs. Superior Plus Corp | GREENX METALS vs. Identiv |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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