Correlation Between Global Ferronickel and RL Commercial

Can any of the company-specific risk be diversified away by investing in both Global Ferronickel and RL Commercial 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 Global Ferronickel and RL Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Ferronickel Holdings and RL Commercial REIT, you can compare the effects of market volatilities on Global Ferronickel and RL Commercial 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 Global Ferronickel with a short position of RL Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ferronickel and RL Commercial.

Diversification Opportunities for Global Ferronickel and RL Commercial

0.72

Correlation Coefficient

Global Ferronickel  RL Commercial

Poor diversification

The 3 months correlation between Global and RCR is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Global Ferronickel Holdings and RL Commercial REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RL Commercial REIT and Global Ferronickel 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 Global Ferronickel Holdings are associated (or correlated) with RL Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RL Commercial REIT has no effect on the direction of Global Ferronickel i.e., Global Ferronickel and RL Commercial go up and down completely randomly.

Pair Corralation between Global Ferronickel and RL Commercial

Assuming the 90 days trading horizon Global Ferronickel Holdings is expected to generate 6.72 times more return on investment than RL Commercial. However, Global Ferronickel is 6.72 times more volatile than RL Commercial REIT. It trades about 0.06 of its potential returns per unit of risk. RL Commercial REIT is currently generating about 0.33 per unit of risk. If you would invest  112.00  in Global Ferronickel Holdings on April 22, 2025 and sell it today you would earn a total of  16.00  from holding Global Ferronickel Holdings or generate 14.29% return on investment over 90 days.

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

Global Ferronickel Holdings  vs.  RL Commercial REIT

Global Ferronickel

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Global Ferronickel Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Global Ferronickel exhibited solid returns over the last few months and may actually be approaching a breakup point.

RL Commercial REIT

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in RL Commercial REIT are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, RL Commercial exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Global Ferronickel and RL Commercial

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

The idea behind Global Ferronickel Holdings and RL Commercial REIT 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.