Correlation Between Glencore PLC and Lithium Chile
Can any of the company-specific risk be diversified away by investing in both Glencore PLC and Lithium Chile 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 Glencore PLC and Lithium Chile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glencore PLC and Lithium Chile, you can compare the effects of market volatilities on Glencore PLC and Lithium Chile 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 Glencore PLC with a short position of Lithium Chile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glencore PLC and Lithium Chile.
Diversification Opportunities for Glencore PLC and Lithium Chile
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Glencore and Lithium is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Glencore PLC and Lithium Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lithium Chile and Glencore PLC 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 Glencore PLC are associated (or correlated) with Lithium Chile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lithium Chile has no effect on the direction of Glencore PLC i.e., Glencore PLC and Lithium Chile go up and down completely randomly.
Pair Corralation between Glencore PLC and Lithium Chile
Assuming the 90 days horizon Glencore PLC is expected to generate 0.45 times more return on investment than Lithium Chile. However, Glencore PLC is 2.22 times less risky than Lithium Chile. It trades about 0.2 of its potential returns per unit of risk. Lithium Chile is currently generating about -0.08 per unit of risk. If you would invest 402.00 in Glencore PLC on August 15, 2025 and sell it today you would earn a total of 89.00 from holding Glencore PLC or generate 22.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Glencore PLC vs. Lithium Chile
Performance |
| Timeline |
| Glencore PLC |
| Lithium Chile |
Glencore PLC and Lithium Chile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glencore PLC and Lithium Chile
The main advantage of trading using opposite Glencore PLC and Lithium Chile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glencore PLC position performs unexpectedly, Lithium Chile 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 Lithium Chile will offset losses from the drop in Lithium Chile's long position.| Glencore PLC vs. Anglo American PLC | Glencore PLC vs. Anglo American plc | Glencore PLC vs. Grupo Mxico SAB | Glencore PLC vs. China Molybdenum Co |
| Lithium Chile vs. Lithium Ionic Corp | Lithium Chile vs. Panoro Minerals | Lithium Chile vs. Defense Metals Corp | Lithium Chile vs. SRG Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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