Correlation Between Altamira Gold and Lion One
Can any of the company-specific risk be diversified away by investing in both Altamira Gold and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on Altamira Gold and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamira Gold and Lion One.
Diversification Opportunities for Altamira Gold and Lion One
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Altamira and Lion is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Altamira Gold Corp and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Altamira Gold i.e., Altamira Gold and Lion One go up and down completely randomly.
Pair Corralation between Altamira Gold and Lion One
Assuming the 90 days trading horizon Altamira Gold Corp is expected to generate 1.54 times more return on investment than Lion One. However, Altamira Gold is 1.54 times more volatile than Lion One Metals. It trades about 0.01 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.04 per unit of risk. If you would invest 25.00 in Altamira Gold Corp on October 19, 2024 and sell it today you would lose (12.00) from holding Altamira Gold Corp or give up 48.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altamira Gold Corp vs. Lion One Metals
Performance |
| Timeline |
| Altamira Gold Corp |
| Lion One Metals |
Altamira Gold and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamira Gold and Lion One
The main advantage of trading using opposite Altamira Gold and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamira Gold position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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