Correlation Between Jubilee Platinum and Glencore PLC
Can any of the company-specific risk be diversified away by investing in both Jubilee Platinum and Glencore PLC 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 Jubilee Platinum and Glencore PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jubilee Platinum and Glencore PLC, you can compare the effects of market volatilities on Jubilee Platinum and Glencore PLC 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 Jubilee Platinum with a short position of Glencore PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jubilee Platinum and Glencore PLC.
Diversification Opportunities for Jubilee Platinum and Glencore PLC
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jubilee and Glencore is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Jubilee Platinum and Glencore PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glencore PLC and Jubilee Platinum 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 Jubilee Platinum are associated (or correlated) with Glencore PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glencore PLC has no effect on the direction of Jubilee Platinum i.e., Jubilee Platinum and Glencore PLC go up and down completely randomly.
Pair Corralation between Jubilee Platinum and Glencore PLC
Assuming the 90 days trading horizon Jubilee Platinum is expected to generate 3.69 times more return on investment than Glencore PLC. However, Jubilee Platinum is 3.69 times more volatile than Glencore PLC. It trades about 0.11 of its potential returns per unit of risk. Glencore PLC is currently generating about -0.1 per unit of risk. If you would invest 8,600 in Jubilee Platinum on November 2, 2024 and sell it today you would earn a total of 900.00 from holding Jubilee Platinum or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jubilee Platinum vs. Glencore PLC
Performance |
| Timeline |
| Jubilee Platinum |
| Glencore PLC |
Jubilee Platinum and Glencore PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jubilee Platinum and Glencore PLC
The main advantage of trading using opposite Jubilee Platinum and Glencore PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jubilee Platinum position performs unexpectedly, Glencore PLC 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 Glencore PLC will offset losses from the drop in Glencore PLC's long position.| Jubilee Platinum vs. ABSA Bank Limited | Jubilee Platinum vs. We Buy Cars | Jubilee Platinum vs. Hosken Consolidated Investments | Jubilee Platinum vs. CA Sales Holdings |
| Glencore PLC vs. HomeChoice Investments | Glencore PLC vs. ABSA Bank Limited | Glencore PLC vs. Astral Foods | Glencore PLC vs. CA Sales Holdings |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |