Correlation Between EVRAZ Plc and Metals Exploration

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

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

Diversification Opportunities for EVRAZ Plc and Metals Exploration

0.0

Correlation Coefficient

EVRAZ Plc  Metals Exploration

Pay attention - limited upside

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

Pair Corralation between EVRAZ Plc and Metals Exploration

If you would invest  600.00  in Metals Exploration Plc on April 4, 2025 and sell it today you would earn a total of  595.00  from holding Metals Exploration Plc or generate 99.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

EVRAZ plc  vs.  Metals Exploration Plc

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.

Metals Exploration Plc

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Metals Exploration Plc are ranked lower than 35 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Metals Exploration exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EVRAZ Plc and Metals Exploration

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

The idea behind EVRAZ plc and Metals Exploration 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.