BHP Group Correlations

BHP Stock

USD 52.36 0.34 0.65%

The current 90-days correlation between BHP Group Limited and Vale SA ADR is 0.84 (i.e., Very poor diversification). The correlation of BHP Group is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

BHP Group Correlation With Market

Modest diversification

The correlation between BHP Group Limited and DJI is 0.26 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding BHP Group Limited and DJI in the same portfolio, assuming nothing else is changed.

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in BHP Group Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.

Moving together with BHP Stock

0.93	VALE	Vale SA ADR Aggressive Push	Pair Corr
0.61	GSM	Ferroglobe PLC	Pair Corr
0.98	RIO	Rio Tinto ADR	Pair Corr
0.66	TMC	TMC the metals	Pair Corr
0.61	LAAC	Lithium Americas Corp	Pair Corr

Moving against BHP Stock

0.31	BYU	BAIYU Holdings	Pair Corr
0.68	ERLFF	Entree Resources	Pair Corr
0.36	KNBWY	Kirin Holdings	Pair Corr
0.34	TMQ	Trilogy Metals	Pair Corr

Related Correlations Analysis

	VALE	TECK	LAC	MP	RIO	GLNCY	PLL	SGML	SLI
VALE		0.85	-0.17	0.17	0.95	0.94	0.07	0.22	0.25	VALE
TECK	0.85		-0.06	0.33	0.92	0.85	0.21	0.42	0.34	TECK
LAC	-0.17	-0.06		0.79	-0.02	-0.15	0.76	0.74	0.76	LAC
MP	0.17	0.33	0.79		0.36	0.14	0.81	0.9	0.84	MP
RIO	0.95	0.92	-0.02	0.36		0.92	0.23	0.43	0.4	RIO
GLNCY	0.94	0.85	-0.15	0.14	0.92		0.16	0.25	0.29	GLNCY
PLL	0.07	0.21	0.76	0.81	0.23	0.16		0.81	0.86	PLL
SGML	0.22	0.42	0.74	0.9	0.43	0.25	0.81		0.85	SGML
SLI	0.25	0.34	0.76	0.84	0.4	0.29	0.86	0.85		SLI
	VALE	TECK	LAC	MP	RIO	GLNCY	PLL	SGML	SLI

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

RIO	+ 0.95	VALE
GLNCY	+ 0.94	VALE
RIO	+ 0.92	TECK
GLNCY	+ 0.92	RIO
SGML	+ 0.9	MP
SLI	+ 0.86	PLL

High negative correlations

LAC	- 0.17	VALE
GLNCY	- 0.15	LAC
LAC	- 0.06	TECK
RIO	- 0.02	LAC

Risk-Adjusted Indicators

There is a big difference between BHP Stock performing well and BHP Group Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze BHP Group's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
VALE	1.51	(0.10)	0.00	(0.11)	0.00	0.00	3.72	(3.49)	11.97
TECK	1.76	(0.16)	(0.05)	0.00	2.63	(1.62)	3.96	(4.64)	11.11
LAC	4.63	0.57	0.16	0.47	3.99	(5.88)	10.63	(7.35)	32.09
MP	2.35	0.55	0.24	0.49	1.93	(2.77)	7.34	(3.74)	17.15
RIO	1.18	(0.07)	(0.07)	(0.01)	1.73	(1.22)	3.28	(2.84)	9.06
GLNCY	1.50	(0.21)	0.00	(0.16)	0.00	0.00	3.22	(4.20)	12.80
PLL	6.26	1.05	0.11	(0.45)	5.62	(7.92)	15.69	(9.30)	34.61
SGML	3.31	0.29	0.10	0.31	3.11	(4.11)	7.65	(4.78)	21.69
SLI	5.41	0.65	0.12	0.66	5.15	(6.95)	14.53	(8.93)	35.90

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