Correlation Between Glencore PLC and Adventus Mining
Can any of the company-specific risk be diversified away by investing in both Glencore PLC and Adventus 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 Adventus Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glencore PLC ADR and Adventus Mining, you can compare the effects of market volatilities on Glencore PLC and Adventus 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 Adventus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glencore PLC and Adventus Mining.
Diversification Opportunities for Glencore PLC and Adventus Mining
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Glencore and Adventus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Glencore PLC ADR and Adventus Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adventus Mining 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 ADR are associated (or correlated) with Adventus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adventus Mining has no effect on the direction of Glencore PLC i.e., Glencore PLC and Adventus Mining go up and down completely randomly.
Pair Corralation between Glencore PLC and Adventus Mining
Assuming the 90 days horizon Glencore PLC ADR is expected to under-perform the Adventus Mining. But the pink sheet apears to be less risky and, when comparing its historical volatility, Glencore PLC ADR is 2.35 times less risky than Adventus Mining. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Adventus Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Adventus Mining on August 30, 2024 and sell it today you would lose (5.00) from holding Adventus Mining or give up 13.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.04% |
| Values | Daily Returns |
Glencore PLC ADR vs. Adventus Mining
Performance |
| Timeline |
| Glencore PLC ADR |
| Adventus Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Glencore PLC and Adventus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glencore PLC and Adventus Mining
The main advantage of trading using opposite Glencore PLC and Adventus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glencore PLC position performs unexpectedly, Adventus 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 Adventus Mining will offset losses from the drop in Adventus Mining's long position.| Glencore PLC vs. Rockridge Resources | Glencore PLC vs. Ameriwest Lithium | Glencore PLC vs. Osisko Metals Incorporated | Glencore PLC vs. Volt Lithium Corp |
| Adventus Mining vs. Pan Global Resources | Adventus Mining vs. Eagle Plains Resources | Adventus Mining vs. Troilus Gold Corp | Adventus Mining vs. Boss Resources |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |