Correlation Between Altamira Gold and Brixton Metals
Can any of the company-specific risk be diversified away by investing in both Altamira Gold and Brixton Metals 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 Altamira Gold and Brixton Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamira Gold Corp and Brixton Metals, you can compare the effects of market volatilities on Altamira Gold and Brixton Metals 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 Altamira Gold with a short position of Brixton Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamira Gold and Brixton Metals.
Diversification Opportunities for Altamira Gold and Brixton Metals
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altamira and Brixton is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Altamira Gold Corp and Brixton Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixton Metals and Altamira Gold 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 Altamira Gold Corp are associated (or correlated) with Brixton Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brixton Metals has no effect on the direction of Altamira Gold i.e., Altamira Gold and Brixton Metals go up and down completely randomly.
Pair Corralation between Altamira Gold and Brixton Metals
Assuming the 90 days trading horizon Altamira Gold Corp is expected to generate 1.08 times more return on investment than Brixton Metals. However, Altamira Gold is 1.08 times more volatile than Brixton Metals. It trades about -0.19 of its potential returns per unit of risk. Brixton Metals is currently generating about -0.22 per unit of risk. If you would invest 19.00 in Altamira Gold Corp on August 30, 2024 and sell it today you would lose (5.00) from holding Altamira Gold Corp or give up 26.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altamira Gold Corp vs. Brixton Metals
Performance |
| Timeline |
| Altamira Gold Corp |
| Brixton Metals |
Altamira Gold and Brixton Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamira Gold and Brixton Metals
The main advantage of trading using opposite Altamira Gold and Brixton Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamira Gold position performs unexpectedly, Brixton Metals 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 Brixton Metals will offset losses from the drop in Brixton Metals' long position.| Altamira Gold vs. CMC Metals | Altamira Gold vs. GMV Minerals | Altamira Gold vs. Finlay Minerals | Altamira Gold vs. Tarku 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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