Correlation Between Advantage Solutions and Atico Mining
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Atico Mining 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 Advantage Solutions and Atico Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Atico Mining, you can compare the effects of market volatilities on Advantage Solutions and Atico Mining 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 Advantage Solutions with a short position of Atico Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Atico Mining.
Diversification Opportunities for Advantage Solutions and Atico Mining
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advantage and Atico is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Atico Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atico Mining and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Atico Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atico Mining has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Atico Mining go up and down completely randomly.
Pair Corralation between Advantage Solutions and Atico Mining
Assuming the 90 days horizon Advantage Solutions is expected to generate 2.27 times more return on investment than Atico Mining. However, Advantage Solutions is 2.27 times more volatile than Atico Mining. It trades about -0.12 of its potential returns per unit of risk. Atico Mining is currently generating about -0.31 per unit of risk. If you would invest 2.67 in Advantage Solutions on September 14, 2024 and sell it today you would lose (0.88) from holding Advantage Solutions or give up 32.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Advantage Solutions vs. Atico Mining
Performance |
| Timeline |
| Advantage Solutions |
| Atico Mining |
Advantage Solutions and Atico Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Atico Mining
The main advantage of trading using opposite Advantage Solutions and Atico Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Atico Mining 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 Atico Mining will offset losses from the drop in Atico Mining's long position.| Advantage Solutions vs. CannBioRx Life Sciences | Advantage Solutions vs. GCM Grosvenor | Advantage Solutions vs. CuriosityStream | Advantage Solutions vs. Aquagold International |
| Atico Mining vs. Advantage Solutions | Atico Mining vs. Atlas Corp | Atico Mining vs. PureCycle Technologies | Atico Mining vs. WM Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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