Correlation Between Atico Mining and Nexa Resources
Can any of the company-specific risk be diversified away by investing in both Atico Mining and Nexa 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 Atico Mining and Nexa Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atico Mining and Nexa Resources SA, you can compare the effects of market volatilities on Atico Mining and Nexa 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 Atico Mining with a short position of Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atico Mining and Nexa Resources.
Diversification Opportunities for Atico Mining and Nexa Resources
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atico and Nexa is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Atico Mining and Nexa Resources SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources SA 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 Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources SA has no effect on the direction of Atico Mining i.e., Atico Mining and Nexa Resources go up and down completely randomly.
Pair Corralation between Atico Mining and Nexa Resources
Assuming the 90 days horizon Atico Mining is expected to generate 3.42 times less return on investment than Nexa Resources. In addition to that, Atico Mining is 2.36 times more volatile than Nexa Resources SA. It trades about 0.0 of its total potential returns per unit of risk. Nexa Resources SA is currently generating about 0.04 per unit of volatility. If you would invest 536.00 in Nexa Resources SA on August 25, 2024 and sell it today you would earn a total of 224.00 from holding Nexa Resources SA or generate 41.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atico Mining vs. Nexa Resources SA
Performance |
| Timeline |
| Atico Mining |
| Nexa Resources SA |
Atico Mining and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atico Mining and Nexa Resources
The main advantage of trading using opposite Atico Mining and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atico Mining position performs unexpectedly, Nexa 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 Nexa Resources will offset losses from the drop in Nexa Resources' long position.| Atico Mining vs. Ascendant Resources | Atico Mining vs. Cantex Mine Development | Atico Mining vs. Amarc Resources | Atico Mining vs. Sterling Metals Corp |
| Nexa Resources vs. Materion | Nexa Resources vs. Fury Gold Mines | Nexa Resources vs. Eskay Mining Corp | Nexa Resources 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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