Correlation Between ATAC Resources and Resolute Mining
Can any of the company-specific risk be diversified away by investing in both ATAC Resources and Resolute Mining 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 ATAC Resources and Resolute Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATAC Resources and Resolute Mining Limited, you can compare the effects of market volatilities on ATAC Resources and Resolute Mining 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 ATAC Resources with a short position of Resolute Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATAC Resources and Resolute Mining.
Diversification Opportunities for ATAC Resources and Resolute Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATAC and Resolute is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATAC Resources and Resolute Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Resolute Mining and ATAC 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 ATAC Resources are associated (or correlated) with Resolute Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Resolute Mining has no effect on the direction of ATAC Resources i.e., ATAC Resources and Resolute Mining go up and down completely randomly.
Pair Corralation between ATAC Resources and Resolute Mining
If you would invest 21.00 in Resolute Mining Limited on December 4, 2024 and sell it today you would earn a total of 3.00 from holding Resolute Mining Limited or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ATAC Resources vs. Resolute Mining Limited
Performance |
| Timeline |
| ATAC Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Resolute Mining |
ATAC Resources and Resolute Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATAC Resources and Resolute Mining
The main advantage of trading using opposite ATAC Resources and Resolute Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATAC Resources position performs unexpectedly, Resolute Mining 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 Resolute Mining will offset losses from the drop in Resolute Mining's long position.| ATAC Resources vs. Minnova Corp | ATAC Resources vs. Argo Gold | ATAC Resources vs. Advance Gold Corp | ATAC Resources vs. Blue Star Gold |
| Resolute Mining vs. Aurion Resources | Resolute Mining vs. Minera Alamos | Resolute Mining vs. Rio2 Limited | Resolute Mining vs. Roscan Gold 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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