Correlation Between Made Tech and Glencore PLC
Can any of the company-specific risk be diversified away by investing in both Made Tech 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 Made Tech and Glencore PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Made Tech Group and Glencore PLC, you can compare the effects of market volatilities on Made Tech 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 Made Tech with a short position of Glencore PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Made Tech and Glencore PLC.
Diversification Opportunities for Made Tech and Glencore PLC
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Made and Glencore is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Made Tech Group and Glencore PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glencore PLC and Made Tech 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 Made Tech Group 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 Made Tech i.e., Made Tech and Glencore PLC go up and down completely randomly.
Pair Corralation between Made Tech and Glencore PLC
Assuming the 90 days trading horizon Made Tech Group is expected to generate 2.59 times more return on investment than Glencore PLC. However, Made Tech is 2.59 times more volatile than Glencore PLC. It trades about 0.17 of its potential returns per unit of risk. Glencore PLC is currently generating about -0.16 per unit of risk. If you would invest 1,650 in Made Tech Group on September 26, 2024 and sell it today you would earn a total of 800.00 from holding Made Tech Group or generate 48.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
Made Tech Group vs. Glencore PLC
Performance |
Timeline |
Made Tech Group |
Glencore PLC |
Made Tech and Glencore PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Made Tech and Glencore PLC
The main advantage of trading using opposite Made Tech and Glencore PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Made Tech 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.Made Tech vs. Samsung Electronics Co | Made Tech vs. Samsung Electronics Co | Made Tech vs. Hyundai Motor | Made Tech vs. Toyota Motor Corp |
Glencore PLC vs. Abingdon Health Plc | Glencore PLC vs. Primary Health Properties | Glencore PLC vs. MyHealthChecked Plc | Glencore PLC vs. Universal Health Services |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
CEOs Directory Screen CEOs from public companies around the world | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |