Correlation Between EVRAZ Plc and Central Asia

Can any of the company-specific risk be diversified away by investing in both EVRAZ Plc and Central Asia 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 EVRAZ Plc and Central Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EVRAZ plc and Central Asia Metals, you can compare the effects of market volatilities on EVRAZ Plc and Central Asia 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 EVRAZ Plc with a short position of Central Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVRAZ Plc and Central Asia.

Diversification Opportunities for EVRAZ Plc and Central Asia

0.0

Correlation Coefficient

EVRAZ Plc  Central Asia

Pay attention - limited upside

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

Pair Corralation between EVRAZ Plc and Central Asia

If you would invest  8,100  in EVRAZ plc on April 20, 2025 and sell it today you would earn a total of  0.00  from holding EVRAZ plc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

EVRAZ plc  vs.  Central Asia Metals

EVRAZ plc

Risk-Adjusted Performance

Very Weak

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

Central Asia Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Central Asia Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with EVRAZ Plc and Central Asia

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

The idea behind EVRAZ plc and Central Asia Metals 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.