Correlation Between Glencore PLC and Bluestone Resources
Can any of the company-specific risk be diversified away by investing in both Glencore PLC and Bluestone Resources 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 Bluestone Resources 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 Bluestone Resources, you can compare the effects of market volatilities on Glencore PLC and Bluestone Resources 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 Bluestone Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glencore PLC and Bluestone Resources.
Diversification Opportunities for Glencore PLC and Bluestone Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glencore and Bluestone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Glencore PLC ADR and Bluestone Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bluestone Resources 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 Bluestone Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bluestone Resources has no effect on the direction of Glencore PLC i.e., Glencore PLC and Bluestone Resources go up and down completely randomly.
Pair Corralation between Glencore PLC and Bluestone Resources
If you would invest 22.00 in Bluestone Resources on January 18, 2025 and sell it today you would earn a total of 0.00 from holding Bluestone Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Glencore PLC ADR vs. Bluestone Resources
Performance |
| Timeline |
| Glencore PLC ADR |
| Bluestone Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Glencore PLC and Bluestone Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glencore PLC and Bluestone Resources
The main advantage of trading using opposite Glencore PLC and Bluestone Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glencore PLC position performs unexpectedly, Bluestone Resources 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 Bluestone Resources will offset losses from the drop in Bluestone Resources' long position.| Glencore PLC vs. Anglo American PLC | Glencore PLC vs. Sumitomo Metal Mining | Glencore PLC vs. Rio Tinto Group | Glencore PLC vs. Ivanhoe Mines |
| Bluestone Resources vs. Minnova Corp | Bluestone Resources vs. Argo Gold | Bluestone Resources vs. Advance Gold Corp | Bluestone Resources vs. Blue Star Gold |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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