Correlation Between Brixton Metals and Polymetal International

Can any of the company-specific risk be diversified away by investing in both Brixton Metals and Polymetal International 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 Brixton Metals and Polymetal International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Brixton Metals and Polymetal International PLC, you can compare the effects of market volatilities on Brixton Metals and Polymetal International 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 Brixton Metals with a short position of Polymetal International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brixton Metals and Polymetal International.

Diversification Opportunities for Brixton Metals and Polymetal International

0.76

Correlation Coefficient

Brixton Metals  Polymetal International

Poor diversification

The 3 months correlation between Brixton and Polymetal is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Brixton Metals and Polymetal International PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polymetal International and Brixton Metals 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 Brixton Metals are associated (or correlated) with Polymetal International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polymetal International has no effect on the direction of Brixton Metals i.e., Brixton Metals and Polymetal International go up and down completely randomly.

Pair Corralation between Brixton Metals and Polymetal International

If you would invest  140.00  in Polymetal International PLC on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Polymetal International PLC or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Brixton Metals  vs.  Polymetal International PLC

Brixton Metals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Brixton Metals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Polymetal International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polymetal International PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Polymetal International is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Brixton Metals and Polymetal International

The main advantage of trading using opposite Brixton Metals and Polymetal International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brixton Metals position performs unexpectedly, Polymetal International 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 Polymetal International will offset losses from the drop in Polymetal International's long position.

The idea behind Brixton Metals and Polymetal International PLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..