Correlation Between Amarc Resources and Atico Mining
Can any of the company-specific risk be diversified away by investing in both Amarc Resources and Atico 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 Amarc Resources and Atico Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amarc Resources and Atico Mining, you can compare the effects of market volatilities on Amarc Resources and Atico 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 Amarc Resources with a short position of Atico Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amarc Resources and Atico Mining.
Diversification Opportunities for Amarc Resources and Atico Mining
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amarc and Atico is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Amarc Resources and Atico Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atico Mining and Amarc 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 Amarc Resources are associated (or correlated) with Atico Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atico Mining has no effect on the direction of Amarc Resources i.e., Amarc Resources and Atico Mining go up and down completely randomly.
Pair Corralation between Amarc Resources and Atico Mining
Assuming the 90 days horizon Amarc Resources is expected to generate 1.0 times more return on investment than Atico Mining. However, Amarc Resources is 1.0 times more volatile than Atico Mining. It trades about 0.03 of its potential returns per unit of risk. Atico Mining is currently generating about -0.03 per unit of risk. If you would invest 14.00 in Amarc Resources on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Amarc Resources or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amarc Resources vs. Atico Mining
Performance |
| Timeline |
| Amarc Resources |
| Atico Mining |
Amarc Resources and Atico Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amarc Resources and Atico Mining
The main advantage of trading using opposite Amarc Resources and Atico Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amarc Resources position performs unexpectedly, Atico 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 Atico Mining will offset losses from the drop in Atico Mining's long position.| Amarc Resources vs. Norra Metals Corp | Amarc Resources vs. ZincX Resources Corp | Amarc Resources vs. Nuinsco Resources Limited | Amarc Resources vs. South Star Battery |
| Atico Mining vs. Ascendant Resources | Atico Mining vs. Cantex Mine Development | Atico Mining vs. Amarc Resources | Atico Mining vs. Sterling Metals 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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