Correlation Between Adriatic Metals and Calculus VCT

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Can any of the company-specific risk be diversified away by investing in both Adriatic Metals and Calculus VCT 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 Adriatic Metals and Calculus VCT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adriatic Metals and Calculus VCT plc, you can compare the effects of market volatilities on Adriatic Metals and Calculus VCT 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 Adriatic Metals with a short position of Calculus VCT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adriatic Metals and Calculus VCT.

Diversification Opportunities for Adriatic Metals and Calculus VCT

AdriaticCalculusDiversified AwayAdriaticCalculusDiversified Away100%
0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Adriatic and Calculus is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Adriatic Metals and Calculus VCT plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calculus VCT plc and Adriatic Metals 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 Adriatic Metals are associated (or correlated) with Calculus VCT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calculus VCT plc has no effect on the direction of Adriatic Metals i.e., Adriatic Metals and Calculus VCT go up and down completely randomly.

Pair Corralation between Adriatic Metals and Calculus VCT

Assuming the 90 days trading horizon Adriatic Metals is expected to generate 1.29 times more return on investment than Calculus VCT. However, Adriatic Metals is 1.29 times more volatile than Calculus VCT plc. It trades about 0.01 of its potential returns per unit of risk. Calculus VCT plc is currently generating about -0.04 per unit of risk. If you would invest  21,250  in Adriatic Metals on October 31, 2024 and sell it today you would lose (200.00) from holding Adriatic Metals or give up 0.94% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Adriatic Metals  vs.  Calculus VCT plc

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-50
JavaScript chart by amCharts 3.21.15ADT1 CLC
       Timeline  
Adriatic Metals 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Adriatic Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Adriatic Metals is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan190195200205210215220
Calculus VCT plc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Calculus VCT plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Calculus VCT is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan5152535455565758

Adriatic Metals and Calculus VCT Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.74-2.8-1.86-0.92-0.01560.891.832.763.74.63 0.060.080.100.12
JavaScript chart by amCharts 3.21.15ADT1 CLC
       Returns  

Pair Trading with Adriatic Metals and Calculus VCT

The main advantage of trading using opposite Adriatic Metals and Calculus VCT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adriatic Metals position performs unexpectedly, Calculus VCT 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 Calculus VCT will offset losses from the drop in Calculus VCT's long position.
The idea behind Adriatic Metals and Calculus VCT 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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