Correlation Between Anglo American and Topps Tiles

Can any of the company-specific risk be diversified away by investing in both Anglo American and Topps Tiles 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 Anglo American and Topps Tiles into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Anglo American and Topps Tiles

0.0

Correlation Coefficient

Anglo American  Topps Tiles

Pay attention - limited upside

The 3 months correlation between Anglo and Topps is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Anglo American PLC and Topps Tiles PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Topps Tiles PLC and Anglo American 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 Anglo American PLC are associated (or correlated) with Topps Tiles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Topps Tiles PLC has no effect on the direction of Anglo American i.e., Anglo American and Topps Tiles go up and down completely randomly.

Pair Corralation between Anglo American and Topps Tiles

If you would invest  218,100  in Anglo American PLC on August 21, 2025 and sell it today you would earn a total of  54,100  from holding Anglo American PLC or generate 24.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Anglo American PLC  vs.  Topps Tiles PLC

Anglo American PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Anglo American PLC are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Anglo American exhibited solid returns over the last few months and may actually be approaching a breakup point.

Topps Tiles PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days Topps Tiles PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Topps Tiles is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Anglo American and Topps Tiles

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

The idea behind Anglo American PLC and Topps Tiles 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.