Rio Tinto Correlations

RIO Stock

USD 54.67 3.76 6.44%

The current 90-days correlation between Rio Tinto ADR and Vale SA ADR is 0.81 (i.e., Very poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Rio Tinto moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Rio Tinto ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

Rio Tinto Correlation With Market

Average diversification

The correlation between Rio Tinto ADR and DJI is 0.19 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Rio Tinto ADR and DJI in the same portfolio, assuming nothing else is changed.

Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Rio Tinto ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

Moving together with Rio Stock

0.74	MP	MP Materials Corp	Pair Corr
0.78	VALE	Vale SA ADR	Pair Corr
0.66	VZLA	Vizsla Resources Corp	Pair Corr
0.78	BHP	BHP Group Limited	Pair Corr
0.62	TMQ	Trilogy Metals	Pair Corr

Moving against Rio Stock

0.71	GTI	Graphjet Technology	Pair Corr
0.56	GRO	Brazil Potash Corp	Pair Corr
0.51	FMST	Foremost Lithium Resource	Pair Corr
0.44	LZM	Lifezone Metals	Pair Corr
0.4	NMG	Nouveau Monde Graphite	Pair Corr
0.37	IPX	IperionX Limited American	Pair Corr
0.36	PLL	Piedmont Lithium	Pair Corr
0.36	SLI	Standard Lithium	Pair Corr
0.33	LAR	Lithium Argentina Symbol Change	Pair Corr
0.7	ABAT	American Battery Tec	Pair Corr
0.59	NEXA	Nexa Resources SA	Pair Corr
0.55	CRML	Critical Metals Corp	Pair Corr
0.54	NVAWW	Nova Minerals Limited	Pair Corr
0.52	LITM	Snow Lake Resources	Pair Corr
0.5	ATLX	Atlas Lithium	Pair Corr
0.39	FMSTW	Foremost Lithium Resource	Pair Corr

Related Correlations Analysis

	VALE	TECK	MP	LAC	BHP	GLNCY	PLL	SGML	SLI
VALE		-0.19	0.92	-0.52	0.43	-0.63	-0.74	-0.09	-0.67	VALE
TECK	-0.19		-0.15	0.66	0.63	0.81	0.65	0.7	0.63	TECK
MP	0.92	-0.15		-0.51	0.4	-0.57	-0.74	-0.1	-0.65	MP
LAC	-0.52	0.66	-0.51		0.21	0.79	0.84	0.59	0.85	LAC
BHP	0.43	0.63	0.4	0.21		0.31	0.11	0.54	0.03	BHP
GLNCY	-0.63	0.81	-0.57	0.79	0.31		0.88	0.57	0.85	GLNCY
PLL	-0.74	0.65	-0.74	0.84	0.11	0.88		0.47	0.9	PLL
SGML	-0.09	0.7	-0.1	0.59	0.54	0.57	0.47		0.4	SGML
SLI	-0.67	0.63	-0.65	0.85	0.03	0.85	0.9	0.4		SLI
	VALE	TECK	MP	LAC	BHP	GLNCY	PLL	SGML	SLI

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

MP	+ 0.92	VALE
SLI	+ 0.9	PLL
PLL	+ 0.88	GLNCY
SLI	+ 0.85	LAC
SLI	+ 0.85	GLNCY
PLL	+ 0.84	LAC

High negative correlations

PLL	- 0.74	MP
PLL	- 0.74	VALE
SLI	- 0.67	VALE
SLI	- 0.65	MP
GLNCY	- 0.63	VALE
GLNCY	- 0.57	MP

Risk-Adjusted Indicators

There is a big difference between Rio Stock performing well and Rio Tinto Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Rio Tinto's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
VALE	1.29	0.24	0.14	0.29	1.98	(1.37)	3.44	(1.51)	14.17
TECK	2.25	(0.22)	0.00	(0.31)	0.00	0.00	3.88	(6.05)	16.86
MP	2.58	0.42	0.14	0.24	2.80	(3.12)	6.60	(5.83)	20.31
LAC	2.73	(0.27)	0.00	(0.48)	0.00	0.00	4.48	(5.92)	18.37
BHP	1.22	(0.07)	0.00	(0.26)	0.00	0.00	2.13	(2.39)	5.95
GLNCY	1.80	(0.45)	0.00	(0.56)	0.00	0.00	2.73	(3.87)	11.12
PLL	2.35	(0.69)	0.00	(1.02)	0.00	0.00	4.48	(5.75)	17.98
SGML	2.48	(0.60)	0.00	(0.74)	0.00	0.00	6.03	(6.19)	33.01
SLI	3.02	(0.36)	0.00	(0.56)	0.00	0.00	7.01	(6.11)	22.14

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