Correlation Between Global Atomic and Ferroglobe PLC

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Global Atomic and Ferroglobe 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 Global Atomic and Ferroglobe PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Atomic Corp and Ferroglobe PLC, you can compare the effects of market volatilities on Global Atomic and Ferroglobe 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 Global Atomic with a short position of Ferroglobe PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Atomic and Ferroglobe PLC.

Diversification Opportunities for Global Atomic and Ferroglobe PLC

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Global and Ferroglobe is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Global Atomic Corp and Ferroglobe PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ferroglobe PLC and Global Atomic 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 Global Atomic Corp are associated (or correlated) with Ferroglobe PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ferroglobe PLC has no effect on the direction of Global Atomic i.e., Global Atomic and Ferroglobe PLC go up and down completely randomly.

Pair Corralation between Global Atomic and Ferroglobe PLC

Assuming the 90 days horizon Global Atomic Corp is expected to under-perform the Ferroglobe PLC. In addition to that, Global Atomic is 1.76 times more volatile than Ferroglobe PLC. It trades about -0.05 of its total potential returns per unit of risk. Ferroglobe PLC is currently generating about 0.01 per unit of volatility. If you would invest  437.00  in Ferroglobe PLC on November 2, 2024 and sell it today you would lose (48.00) from holding Ferroglobe PLC or give up 10.98% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy99.8%
ValuesDaily Returns

Global Atomic Corp  vs.  Ferroglobe PLC

 Performance 
       Timeline  
Global Atomic Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Global Atomic Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Ferroglobe PLC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ferroglobe PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Global Atomic and Ferroglobe PLC Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Global Atomic and Ferroglobe PLC

The main advantage of trading using opposite Global Atomic and Ferroglobe PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Atomic position performs unexpectedly, Ferroglobe 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 Ferroglobe PLC will offset losses from the drop in Ferroglobe PLC's long position.
The idea behind Global Atomic Corp and Ferroglobe PLC 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Money Managers
Screen money managers from public funds and ETFs managed around the world
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals