Correlation Between EVRAZ Plc and Future Metals

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

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

Diversification Opportunities for EVRAZ Plc and Future Metals

0.0

Correlation Coefficient

EVRAZ Plc  Future Metals

Pay attention - limited upside

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

Pair Corralation between EVRAZ Plc and Future Metals

If you would invest  55.00  in Future Metals NL on April 21, 2025 and sell it today you would earn a total of  30.00  from holding Future Metals NL or generate 54.55% return on investment over 90 days.

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

EVRAZ plc  vs.  Future Metals NL

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 newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Future Metals NL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Future Metals NL are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Future Metals exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EVRAZ Plc and Future Metals

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

The idea behind EVRAZ plc and Future Metals NL 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.