Correlation Between Glencore PLC and Sulliden Mining
Can any of the company-specific risk be diversified away by investing in both Glencore PLC and Sulliden Mining 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 Sulliden Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glencore PLC and Sulliden Mining Capital, you can compare the effects of market volatilities on Glencore PLC and Sulliden Mining 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 Sulliden Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glencore PLC and Sulliden Mining.
Diversification Opportunities for Glencore PLC and Sulliden Mining
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glencore and Sulliden is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Glencore PLC and Sulliden Mining Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sulliden Mining Capital 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 Sulliden Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sulliden Mining Capital has no effect on the direction of Glencore PLC i.e., Glencore PLC and Sulliden Mining go up and down completely randomly.
Pair Corralation between Glencore PLC and Sulliden Mining
Assuming the 90 days horizon Glencore PLC is expected to under-perform the Sulliden Mining. But the pink sheet apears to be less risky and, when comparing its historical volatility, Glencore PLC is 6.16 times less risky than Sulliden Mining. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Sulliden Mining Capital is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.72 in Sulliden Mining Capital on August 31, 2024 and sell it today you would lose (1.13) from holding Sulliden Mining Capital or give up 65.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glencore PLC vs. Sulliden Mining Capital
Performance |
| Timeline |
| Glencore PLC |
| Sulliden Mining Capital |
Glencore PLC and Sulliden Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glencore PLC and Sulliden Mining
The main advantage of trading using opposite Glencore PLC and Sulliden Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glencore PLC position performs unexpectedly, Sulliden Mining 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 Sulliden Mining will offset losses from the drop in Sulliden Mining'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 |
| Sulliden Mining vs. Mundoro Capital | Sulliden Mining vs. Class 1 Nickel | Sulliden Mining vs. E79 Resources Corp | Sulliden Mining vs. Voltage Metals 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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