Correlation Between American Helium and Atacama Resources
Can any of the company-specific risk be diversified away by investing in both American Helium and Atacama Resources 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 American Helium and Atacama Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Helium and Atacama Resources International, you can compare the effects of market volatilities on American Helium and Atacama Resources 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 American Helium with a short position of Atacama Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Helium and Atacama Resources.
Diversification Opportunities for American Helium and Atacama Resources
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Atacama is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding American Helium and Atacama Resources Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atacama Resources and American Helium 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 American Helium are associated (or correlated) with Atacama Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atacama Resources has no effect on the direction of American Helium i.e., American Helium and Atacama Resources go up and down completely randomly.
Pair Corralation between American Helium and Atacama Resources
Assuming the 90 days horizon American Helium is expected to under-perform the Atacama Resources. But the pink sheet apears to be less risky and, when comparing its historical volatility, American Helium is 22.93 times less risky than Atacama Resources. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Atacama Resources International is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.15 in Atacama Resources International on October 26, 2024 and sell it today you would earn a total of 0.08 from holding Atacama Resources International or generate 53.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.7% |
| Values | Daily Returns |
American Helium vs. Atacama Resources Internationa
Performance |
| Timeline |
| American Helium |
| Atacama Resources |
American Helium and Atacama Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Helium and Atacama Resources
The main advantage of trading using opposite American Helium and Atacama Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Helium position performs unexpectedly, Atacama Resources 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 Atacama Resources will offset losses from the drop in Atacama Resources' long position.| American Helium vs. Huntsman Exploration | American Helium vs. Aurelia Metals Limited | American Helium vs. Adriatic Metals PLC | American Helium vs. Progressive Planet Solutions |
| Atacama Resources vs. Huntsman Exploration | Atacama Resources vs. Aurelia Metals Limited | Atacama Resources vs. Adriatic Metals PLC | Atacama Resources vs. American Helium |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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