Vale SA Correlations

VALE Stock

USD 10.02 0.06 0.60%

The current 90-days correlation between Vale SA ADR and BHP Group Limited is 0.84 (i.e., Very poor diversification). The correlation of Vale SA 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.

Vale SA Correlation With Market

Average diversification

The correlation between Vale SA ADR and DJI is 0.16 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Vale SA ADR and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vale SA ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Moving together with Vale Stock

0.93	BHP	BHP Group Limited	Pair Corr
0.95	RIO	Rio Tinto ADR	Pair Corr
0.69	TMC	TMC the metals	Pair Corr

Moving against Vale Stock

0.51	TMQ	Trilogy Metals	Pair Corr
0.39	NAK	Northern Dynasty Minerals	Pair Corr
0.56	SMTSF	Sierra Metals	Pair Corr
0.55	ERLFF	Entree Resources	Pair Corr
0.4	REEMF	Rare Element Resources	Pair Corr
0.39	JAPSY	Japan Airlines	Pair Corr
0.39	AVLNF	Avalon Advanced Materials Earnings Call Tomorrow	Pair Corr
0.34	ATLX	Atlas Lithium	Pair Corr

Related Correlations Analysis

	BHP	TECK	LAC	MP	RIO	GLNCY	PLL	SGML	SLI
BHP		0.9	0.02	0.42	0.98	0.92	0.32	0.49	0.47	BHP
TECK	0.9		-0.06	0.33	0.92	0.85	0.21	0.42	0.34	TECK
LAC	0.02	-0.06		0.79	-0.02	-0.15	0.76	0.74	0.76	LAC
MP	0.42	0.33	0.79		0.36	0.14	0.81	0.9	0.84	MP
RIO	0.98	0.92	-0.02	0.36		0.92	0.23	0.43	0.4	RIO
GLNCY	0.92	0.85	-0.15	0.14	0.92		0.16	0.25	0.29	GLNCY
PLL	0.32	0.21	0.76	0.81	0.23	0.16		0.81	0.86	PLL
SGML	0.49	0.42	0.74	0.9	0.43	0.25	0.81		0.85	SGML
SLI	0.47	0.34	0.76	0.84	0.4	0.29	0.86	0.85		SLI
	BHP	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	+ 0.98	BHP
GLNCY	+ 0.92	BHP
RIO	+ 0.92	TECK
GLNCY	+ 0.92	RIO
TECK	+ 0.9	BHP
SGML	+ 0.9	MP

High negative correlations

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

Risk-Adjusted Indicators

There is a big difference between Vale Stock performing well and Vale SA 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 Vale SA'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
BHP	1.37	(0.08)	(0.06)	(0.01)	2.07	(1.23)	3.24	(3.01)	9.94
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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