Correlation Between Glencore PLC and Bayhorse Silver
Can any of the company-specific risk be diversified away by investing in both Glencore PLC and Bayhorse Silver 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 Glencore PLC and Bayhorse Silver into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glencore PLC and Bayhorse Silver, you can compare the effects of market volatilities on Glencore PLC and Bayhorse Silver 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 Glencore PLC with a short position of Bayhorse Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glencore PLC and Bayhorse Silver.
Diversification Opportunities for Glencore PLC and Bayhorse Silver
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glencore and Bayhorse is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Glencore PLC and Bayhorse Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayhorse Silver and Glencore PLC 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 Glencore PLC are associated (or correlated) with Bayhorse Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayhorse Silver has no effect on the direction of Glencore PLC i.e., Glencore PLC and Bayhorse Silver go up and down completely randomly.
Pair Corralation between Glencore PLC and Bayhorse Silver
Assuming the 90 days horizon Glencore PLC is expected to under-perform the Bayhorse Silver. But the pink sheet apears to be less risky and, when comparing its historical volatility, Glencore PLC is 10.26 times less risky than Bayhorse Silver. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Bayhorse Silver is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Bayhorse Silver on October 24, 2024 and sell it today you would earn a total of 0.82 from holding Bayhorse Silver or generate 27.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glencore PLC vs. Bayhorse Silver
Performance |
| Timeline |
| Glencore PLC |
| Bayhorse Silver |
Glencore PLC and Bayhorse Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glencore PLC and Bayhorse Silver
The main advantage of trading using opposite Glencore PLC and Bayhorse Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glencore PLC position performs unexpectedly, Bayhorse Silver 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 Bayhorse Silver will offset losses from the drop in Bayhorse Silver's long position.| Glencore PLC vs. Anglo American PLC | Glencore PLC vs. Teck Resources Ltd | Glencore PLC vs. BHP Group Limited | Glencore PLC vs. Vale SA ADR |
| Bayhorse Silver vs. Golden Lake Exploration | Bayhorse Silver vs. Transition Metals Corp | Bayhorse Silver vs. Vendetta Mining Corp | Bayhorse Silver vs. Commerce Resources Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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