Correlation Between Antilles Gold and ATAC Resources
Can any of the company-specific risk be diversified away by investing in both Antilles Gold and ATAC 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 Antilles Gold and ATAC Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antilles Gold Limited and ATAC Resources, you can compare the effects of market volatilities on Antilles Gold and ATAC 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 Antilles Gold with a short position of ATAC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antilles Gold and ATAC Resources.
Diversification Opportunities for Antilles Gold and ATAC Resources
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Antilles and ATAC is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Antilles Gold Limited and ATAC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATAC Resources and Antilles 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 Antilles Gold Limited are associated (or correlated) with ATAC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATAC Resources has no effect on the direction of Antilles Gold i.e., Antilles Gold and ATAC Resources go up and down completely randomly.
Pair Corralation between Antilles Gold and ATAC Resources
Assuming the 90 days horizon Antilles Gold Limited is expected to generate 10.16 times more return on investment than ATAC Resources. However, Antilles Gold is 10.16 times more volatile than ATAC Resources. It trades about 0.13 of its potential returns per unit of risk. ATAC Resources is currently generating about 0.07 per unit of risk. If you would invest 6.44 in Antilles Gold Limited on September 4, 2024 and sell it today you would lose (6.16) from holding Antilles Gold Limited or give up 95.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 28.69% |
| Values | Daily Returns |
Antilles Gold Limited vs. ATAC Resources
Performance |
| Timeline |
| Antilles Gold Limited |
| ATAC Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Antilles Gold and ATAC Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antilles Gold and ATAC Resources
The main advantage of trading using opposite Antilles Gold and ATAC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antilles Gold position performs unexpectedly, ATAC 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 ATAC Resources will offset losses from the drop in ATAC Resources' long position.| Antilles Gold vs. Harmony Gold Mining | Antilles Gold vs. SPACE | Antilles Gold vs. T Rowe Price | Antilles Gold vs. Ampleforth |
| ATAC Resources vs. Minnova Corp | ATAC Resources vs. Argo Gold | ATAC Resources vs. Advance Gold Corp | ATAC Resources vs. Blue Star Gold |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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