Correlation Between Atico Mining and Materion
Can any of the company-specific risk be diversified away by investing in both Atico Mining and Materion 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 Atico Mining and Materion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atico Mining and Materion, you can compare the effects of market volatilities on Atico Mining and Materion 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 Atico Mining with a short position of Materion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atico Mining and Materion.
Diversification Opportunities for Atico Mining and Materion
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atico and Materion is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Atico Mining and Materion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materion and Atico 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 Atico Mining are associated (or correlated) with Materion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Materion has no effect on the direction of Atico Mining i.e., Atico Mining and Materion go up and down completely randomly.
Pair Corralation between Atico Mining and Materion
Assuming the 90 days horizon Atico Mining is expected to under-perform the Materion. In addition to that, Atico Mining is 1.94 times more volatile than Materion. It trades about -0.12 of its total potential returns per unit of risk. Materion is currently generating about 0.17 per unit of volatility. If you would invest 10,446 in Materion on August 29, 2024 and sell it today you would earn a total of 1,088 from holding Materion or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Atico Mining vs. Materion
Performance |
| Timeline |
| Atico Mining |
| Materion |
Atico Mining and Materion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atico Mining and Materion
The main advantage of trading using opposite Atico Mining and Materion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atico Mining position performs unexpectedly, Materion 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 Materion will offset losses from the drop in Materion's long position.| Atico Mining vs. Silver Hammer Mining | Atico Mining vs. Reyna Silver Corp | Atico Mining vs. Guanajuato Silver | Atico Mining vs. Silver One Resources |
| Materion vs. Skeena Resources | Materion vs. Compass Minerals International | Materion vs. IperionX Limited American | Materion vs. EMX Royalty 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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