Correlation Between Volt Lithium and Glencore PLC
Can any of the company-specific risk be diversified away by investing in both Volt Lithium 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 Volt Lithium and Glencore PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Volt Lithium Corp and Glencore PLC ADR, you can compare the effects of market volatilities on Volt Lithium 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 Volt Lithium with a short position of Glencore PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Volt Lithium and Glencore PLC.
Diversification Opportunities for Volt Lithium and Glencore PLC
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Volt and Glencore is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Volt Lithium Corp and Glencore PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glencore PLC ADR and Volt Lithium 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 Volt Lithium Corp 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 ADR has no effect on the direction of Volt Lithium i.e., Volt Lithium and Glencore PLC go up and down completely randomly.
Pair Corralation between Volt Lithium and Glencore PLC
Assuming the 90 days horizon Volt Lithium Corp is expected to under-perform the Glencore PLC. In addition to that, Volt Lithium is 1.79 times more volatile than Glencore PLC ADR. It trades about -0.36 of its total potential returns per unit of risk. Glencore PLC ADR is currently generating about -0.16 per unit of volatility. If you would invest 1,044 in Glencore PLC ADR on September 1, 2024 and sell it today you would lose (84.00) from holding Glencore PLC ADR or give up 8.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Volt Lithium Corp vs. Glencore PLC ADR
Performance |
| Timeline |
| Volt Lithium Corp |
| Glencore PLC ADR |
Volt Lithium and Glencore PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Volt Lithium and Glencore PLC
The main advantage of trading using opposite Volt Lithium and Glencore PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Volt Lithium 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.| Volt Lithium vs. Legacy Education | Volt Lithium vs. Apple Inc | Volt Lithium vs. NVIDIA | Volt Lithium vs. Microsoft |
| Glencore PLC vs. ATT Inc | Glencore PLC vs. Merck Company | Glencore PLC vs. Walt Disney | Glencore PLC vs. Caterpillar |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |