Correlation Between Atlas Corp and Jaguar Mining
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Jaguar 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 Atlas Corp and Jaguar Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Jaguar Mining, you can compare the effects of market volatilities on Atlas Corp and Jaguar 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 Atlas Corp with a short position of Jaguar Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Jaguar Mining.
Diversification Opportunities for Atlas Corp and Jaguar Mining
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlas and Jaguar is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Jaguar Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Mining and Atlas Corp 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 Atlas Corp are associated (or correlated) with Jaguar Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Mining has no effect on the direction of Atlas Corp i.e., Atlas Corp and Jaguar Mining go up and down completely randomly.
Pair Corralation between Atlas Corp and Jaguar Mining
Assuming the 90 days horizon Atlas Corp is expected to generate 0.11 times more return on investment than Jaguar Mining. However, Atlas Corp is 9.23 times less risky than Jaguar Mining. It trades about -0.04 of its potential returns per unit of risk. Jaguar Mining is currently generating about -0.21 per unit of risk. If you would invest 2,517 in Atlas Corp on September 1, 2024 and sell it today you would lose (9.00) from holding Atlas Corp or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Corp vs. Jaguar Mining
Performance |
| Timeline |
| Atlas Corp |
| Jaguar Mining |
Atlas Corp and Jaguar Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Jaguar Mining
The main advantage of trading using opposite Atlas Corp and Jaguar Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Jaguar 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 Jaguar Mining will offset losses from the drop in Jaguar Mining's long position.| Atlas Corp vs. Harrow Health 8625 | Atlas Corp vs. Babcock Wilcox Enterprises, | Atlas Corp vs. B Riley Financial | Atlas Corp vs. Oxford Lane Capital |
| Jaguar Mining vs. South32 Limited | Jaguar Mining vs. NioCorp Developments Ltd | Jaguar Mining vs. HUMANA INC | Jaguar Mining vs. SCOR PK |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |