Correlation Between Black Rock and Metals X

Can any of the company-specific risk be diversified away by investing in both Black Rock and Metals X 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 Black Rock and Metals X into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Black Rock Mining and Metals X, you can compare the effects of market volatilities on Black Rock and Metals X 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 Black Rock with a short position of Metals X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Rock and Metals X.

Diversification Opportunities for Black Rock and Metals X

-0.83

Correlation Coefficient

Black Rock  Metals X

Pay attention - limited upside

The 3 months correlation between Black and Metals is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Black Rock Mining and Metals X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metals X and Black Rock 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 Black Rock Mining are associated (or correlated) with Metals X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metals X has no effect on the direction of Black Rock i.e., Black Rock and Metals X go up and down completely randomly.

Pair Corralation between Black Rock and Metals X

Assuming the 90 days trading horizon Black Rock Mining is expected to under-perform the Metals X. In addition to that, Black Rock is 1.13 times more volatile than Metals X. It trades about -0.14 of its total potential returns per unit of risk. Metals X is currently generating about 0.26 per unit of volatility. If you would invest  40.00  in Metals X on December 22, 2024 and sell it today you would earn a total of  32.00  from holding Metals X or generate 80.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Black Rock Mining  vs.  Metals X

Black Rock Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Black Rock Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Metals X

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Metals X are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Metals X unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Black Rock and Metals X

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

The idea behind Black Rock Mining and Metals X 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.