Correlation Between Altura Mining and New Age
Can any of the company-specific risk be diversified away by investing in both Altura Mining and New Age 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 Altura Mining and New Age into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altura Mining Limited and New Age Metals, you can compare the effects of market volatilities on Altura Mining and New Age 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 Altura Mining with a short position of New Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altura Mining and New Age.
Diversification Opportunities for Altura Mining and New Age
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altura and New is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Altura Mining Limited and New Age Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Age Metals and Altura Mining 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 Altura Mining Limited are associated (or correlated) with New Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Age Metals has no effect on the direction of Altura Mining i.e., Altura Mining and New Age go up and down completely randomly.
Pair Corralation between Altura Mining and New Age
Assuming the 90 days horizon Altura Mining Limited is expected to generate 3.27 times more return on investment than New Age. However, Altura Mining is 3.27 times more volatile than New Age Metals. It trades about 0.1 of its potential returns per unit of risk. New Age Metals is currently generating about 0.09 per unit of risk. If you would invest 0.30 in Altura Mining Limited on August 26, 2024 and sell it today you would earn a total of 0.22 from holding Altura Mining Limited or generate 73.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altura Mining Limited vs. New Age Metals
Performance |
| Timeline |
| Altura Mining Limited |
| New Age Metals |
Altura Mining and New Age Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altura Mining and New Age
The main advantage of trading using opposite Altura Mining and New Age positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altura Mining position performs unexpectedly, New Age 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 New Age will offset losses from the drop in New Age's long position.| Altura Mining vs. Aurelia Metals Limited | Altura Mining vs. Ascendant Resources | Altura Mining vs. Artemis Resources | Altura Mining vs. Azimut Exploration |
| New Age vs. Vision Lithium | New Age vs. Group Ten Metals | New Age vs. Generation Mining Limited | New Age vs. Nickel Creek Platinum |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |