Correlation Between Corporate Travel and Glencore Plc
Can any of the company-specific risk be diversified away by investing in both Corporate Travel and Glencore Plc 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 Corporate Travel and Glencore Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and Glencore plc, you can compare the effects of market volatilities on Corporate Travel and Glencore Plc 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 Corporate Travel with a short position of Glencore Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and Glencore Plc.
Diversification Opportunities for Corporate Travel and Glencore Plc
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Corporate and Glencore is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and Glencore plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glencore plc and Corporate Travel 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 Corporate Travel Management are associated (or correlated) with Glencore Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glencore plc has no effect on the direction of Corporate Travel i.e., Corporate Travel and Glencore Plc go up and down completely randomly.
Pair Corralation between Corporate Travel and Glencore Plc
Assuming the 90 days trading horizon Corporate Travel Management is expected to generate 0.86 times more return on investment than Glencore Plc. However, Corporate Travel Management is 1.16 times less risky than Glencore Plc. It trades about 0.38 of its potential returns per unit of risk. Glencore plc is currently generating about -0.12 per unit of risk. If you would invest 765.00 in Corporate Travel Management on November 7, 2024 and sell it today you would earn a total of 125.00 from holding Corporate Travel Management or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Corporate Travel Management vs. Glencore plc
Performance |
| Timeline |
| Corporate Travel Man |
| Glencore plc |
Corporate Travel and Glencore Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Travel and Glencore Plc
The main advantage of trading using opposite Corporate Travel and Glencore Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel position performs unexpectedly, Glencore Plc 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 Glencore Plc will offset losses from the drop in Glencore Plc's long position.| Corporate Travel vs. Brockhaus Capital Management | Corporate Travel vs. Siemens Healthineers AG | Corporate Travel vs. Universal Health Realty | Corporate Travel vs. MTY Food Group |
| Glencore Plc vs. Ubisoft Entertainment SA | Glencore Plc vs. CDL INVESTMENT | Glencore Plc vs. Scottish Mortgage Investment | Glencore Plc vs. JLF 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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