Correlation Between VELA TECHNOLPLC and Anglo American

Can any of the company-specific risk be diversified away by investing in both VELA TECHNOLPLC and Anglo American 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 VELA TECHNOLPLC and Anglo American into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between VELA TECHNOLPLC LS 0001 and Anglo American plc, you can compare the effects of market volatilities on VELA TECHNOLPLC and Anglo American 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 VELA TECHNOLPLC with a short position of Anglo American. Check out your portfolio center. Please also check ongoing floating volatility patterns of VELA TECHNOLPLC and Anglo American.

Diversification Opportunities for VELA TECHNOLPLC and Anglo American

0.0

Correlation Coefficient

VELA TECHNOLPLC  Anglo American

Pay attention - limited upside

The 3 months correlation between VELA and Anglo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VELA TECHNOLPLC LS 0001 and Anglo American plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo American plc and VELA TECHNOLPLC 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 VELA TECHNOLPLC LS 0001 are associated (or correlated) with Anglo American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo American plc has no effect on the direction of VELA TECHNOLPLC i.e., VELA TECHNOLPLC and Anglo American go up and down completely randomly.

Pair Corralation between VELA TECHNOLPLC and Anglo American

If you would invest  2,392  in Anglo American plc on April 24, 2025 and sell it today you would earn a total of  278.00  from holding Anglo American plc or generate 11.62% return on investment over 90 days.

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

VELA TECHNOLPLC LS 0001  vs.  Anglo American plc

VELA TECHNOLPLC LS

Risk-Adjusted Performance

Very Weak

Over the last 90 days VELA TECHNOLPLC LS 0001 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, VELA TECHNOLPLC is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Anglo American plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Anglo American plc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, Anglo American may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with VELA TECHNOLPLC and Anglo American

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

The idea behind VELA TECHNOLPLC LS 0001 and Anglo American 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.