Correlation Between G S and Vale SA
Can any of the company-specific risk be diversified away by investing in both G S and Vale SA 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 G S and Vale SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G S International and Vale SA ADR, you can compare the effects of market volatilities on G S and Vale SA 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 G S with a short position of Vale SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of G S and Vale SA.
Diversification Opportunities for G S and Vale SA
Pay attention - limited upside
The 3 months correlation between GSML and Vale is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding G S International and Vale SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vale SA ADR and G S 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 G S International are associated (or correlated) with Vale SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vale SA ADR has no effect on the direction of G S i.e., G S and Vale SA go up and down completely randomly.
Pair Corralation between G S and Vale SA
If you would invest 0.01 in G S International on September 1, 2024 and sell it today you would earn a total of 0.00 from holding G S International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
G S International vs. Vale SA ADR
Performance |
| Timeline |
| G S International |
| Vale SA ADR |
G S and Vale SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G S and Vale SA
The main advantage of trading using opposite G S and Vale SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G S position performs unexpectedly, Vale SA 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 Vale SA will offset losses from the drop in Vale SA's long position.| G S vs. NioCorp Developments Ltd | G S vs. Teck Resources Ltd | G S vs. Sigma Lithium Resources | G S vs. MP Materials Corp |
| Vale SA vs. BHP Group Limited | Vale SA vs. Teck Resources Ltd | Vale SA vs. Lithium Americas Corp | Vale SA vs. MP Materials 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges |