Correlation Between Gentor Resources and Glencore PLC
Can any of the company-specific risk be diversified away by investing in both Gentor Resources 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 Gentor Resources and Glencore PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gentor Resources and Glencore PLC, you can compare the effects of market volatilities on Gentor Resources 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 Gentor Resources with a short position of Glencore PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentor Resources and Glencore PLC.
Diversification Opportunities for Gentor Resources and Glencore PLC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gentor and Glencore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gentor Resources and Glencore PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glencore PLC and Gentor Resources 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 Gentor Resources 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 Gentor Resources i.e., Gentor Resources and Glencore PLC go up and down completely randomly.
Pair Corralation between Gentor Resources and Glencore PLC
If you would invest 544.00 in Glencore PLC on January 21, 2024 and sell it today you would earn a total of 44.00 from holding Glencore PLC or generate 8.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gentor Resources vs. Glencore PLC
Performance |
| Timeline |
| Gentor Resources |
| Glencore PLC |
Gentor Resources and Glencore PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentor Resources and Glencore PLC
The main advantage of trading using opposite Gentor Resources and Glencore PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentor Resources 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.| Gentor Resources vs. Alumina Limited | Gentor Resources vs. HUMANA INC | Gentor Resources vs. Aquagold International | Gentor Resources vs. Spring Valley Acquisition |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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