Correlation Between Atlas Corp and Regulus Resources
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Regulus 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 Atlas Corp and Regulus Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Regulus Resources, you can compare the effects of market volatilities on Atlas Corp and Regulus 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 Atlas Corp with a short position of Regulus Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Regulus Resources.
Diversification Opportunities for Atlas Corp and Regulus Resources
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atlas and Regulus is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Regulus Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regulus Resources 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 Regulus Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regulus Resources has no effect on the direction of Atlas Corp i.e., Atlas Corp and Regulus Resources go up and down completely randomly.
Pair Corralation between Atlas Corp and Regulus Resources
Assuming the 90 days horizon Atlas Corp is expected to generate 0.17 times more return on investment than Regulus Resources. However, Atlas Corp is 5.76 times less risky than Regulus Resources. It trades about 0.07 of its potential returns per unit of risk. Regulus Resources is currently generating about -0.23 per unit of risk. If you would invest 2,504 in Atlas Corp on September 12, 2024 and sell it today you would earn a total of 12.10 from holding Atlas Corp or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Atlas Corp vs. Regulus Resources
Performance |
| Timeline |
| Atlas Corp |
| Regulus Resources |
Atlas Corp and Regulus Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Regulus Resources
The main advantage of trading using opposite Atlas Corp and Regulus Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Regulus 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 Regulus Resources will offset losses from the drop in Regulus Resources' 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 |
| Regulus Resources vs. Peak Resources Limited | Regulus Resources vs. Glen Eagle Resources | Regulus Resources vs. Metals Creek Resources | Regulus Resources vs. PepinNini Minerals Limited |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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