Correlation Between Aclara Resources and Boliden AB
Can any of the company-specific risk be diversified away by investing in both Aclara Resources and Boliden AB 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 Aclara Resources and Boliden AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aclara Resources and Boliden AB ADR, you can compare the effects of market volatilities on Aclara Resources and Boliden AB 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 Aclara Resources with a short position of Boliden AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aclara Resources and Boliden AB.
Diversification Opportunities for Aclara Resources and Boliden AB
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aclara and Boliden is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aclara Resources and Boliden AB ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boliden AB ADR and Aclara Resources 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 Aclara Resources are associated (or correlated) with Boliden AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boliden AB ADR has no effect on the direction of Aclara Resources i.e., Aclara Resources and Boliden AB go up and down completely randomly.
Pair Corralation between Aclara Resources and Boliden AB
Assuming the 90 days horizon Aclara Resources is expected to under-perform the Boliden AB. In addition to that, Aclara Resources is 1.82 times more volatile than Boliden AB ADR. It trades about -0.05 of its total potential returns per unit of risk. Boliden AB ADR is currently generating about -0.04 per unit of volatility. If you would invest 6,984 in Boliden AB ADR on August 29, 2024 and sell it today you would lose (1,049) from holding Boliden AB ADR or give up 15.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aclara Resources vs. Boliden AB ADR
Performance |
| Timeline |
| Aclara Resources |
| Boliden AB ADR |
Aclara Resources and Boliden AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aclara Resources and Boliden AB
The main advantage of trading using opposite Aclara Resources and Boliden AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aclara Resources position performs unexpectedly, Boliden AB 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 Boliden AB will offset losses from the drop in Boliden AB's long position.| Aclara Resources vs. Edison Cobalt Corp | Aclara Resources vs. Champion Bear Resources | Aclara Resources vs. Avarone Metals | Aclara Resources vs. Adriatic Metals PLC |
| Boliden AB vs. Rockridge Resources | Boliden AB vs. Ameriwest Lithium | Boliden AB vs. Osisko Metals Incorporated | Boliden AB vs. Volt Lithium Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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