Correlation Between Atacama Resources and K9 Gold
Can any of the company-specific risk be diversified away by investing in both Atacama Resources and K9 Gold 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 Atacama Resources and K9 Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atacama Resources International and K9 Gold Corp, you can compare the effects of market volatilities on Atacama Resources and K9 Gold 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 Atacama Resources with a short position of K9 Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atacama Resources and K9 Gold.
Diversification Opportunities for Atacama Resources and K9 Gold
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atacama and WDFCF is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Atacama Resources Internationa and K9 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K9 Gold Corp and Atacama Resources 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 Atacama Resources International are associated (or correlated) with K9 Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K9 Gold Corp has no effect on the direction of Atacama Resources i.e., Atacama Resources and K9 Gold go up and down completely randomly.
Pair Corralation between Atacama Resources and K9 Gold
Given the investment horizon of 90 days Atacama Resources International is expected to generate 1.56 times more return on investment than K9 Gold. However, Atacama Resources is 1.56 times more volatile than K9 Gold Corp. It trades about 0.06 of its potential returns per unit of risk. K9 Gold Corp is currently generating about 0.05 per unit of risk. If you would invest 0.35 in Atacama Resources International on October 26, 2024 and sell it today you would lose (0.12) from holding Atacama Resources International or give up 34.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Atacama Resources Internationa vs. K9 Gold Corp
Performance |
| Timeline |
| Atacama Resources |
| K9 Gold Corp |
Atacama Resources and K9 Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atacama Resources and K9 Gold
The main advantage of trading using opposite Atacama Resources and K9 Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atacama Resources position performs unexpectedly, K9 Gold 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 K9 Gold will offset losses from the drop in K9 Gold's long position.| Atacama Resources vs. Huntsman Exploration | Atacama Resources vs. Aurelia Metals Limited | Atacama Resources vs. Adriatic Metals PLC | Atacama Resources vs. American Helium |
| K9 Gold vs. Aurwest Resources | K9 Gold vs. Benton Resources | K9 Gold vs. Pan Global Resources | K9 Gold vs. Red Moon Resources |
Check out your portfolio center.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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |