Correlation Between Cordoba Minerals and Atico Mining
Can any of the company-specific risk be diversified away by investing in both Cordoba Minerals 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 Cordoba Minerals and Atico Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cordoba Minerals Corp and Atico Mining, you can compare the effects of market volatilities on Cordoba Minerals 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 Cordoba Minerals with a short position of Atico Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cordoba Minerals and Atico Mining.
Diversification Opportunities for Cordoba Minerals and Atico Mining
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cordoba and Atico is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cordoba Minerals Corp and Atico Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atico Mining and Cordoba Minerals 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 Cordoba Minerals Corp 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 Cordoba Minerals i.e., Cordoba Minerals and Atico Mining go up and down completely randomly.
Pair Corralation between Cordoba Minerals and Atico Mining
Assuming the 90 days horizon Cordoba Minerals Corp is expected to generate 0.97 times more return on investment than Atico Mining. However, Cordoba Minerals Corp is 1.03 times less risky than Atico Mining. It trades about 0.02 of its potential returns per unit of risk. Atico Mining is currently generating about 0.01 per unit of risk. If you would invest 51.00 in Cordoba Minerals Corp on September 12, 2024 and sell it today you would lose (11.00) from holding Cordoba Minerals Corp or give up 21.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cordoba Minerals Corp vs. Atico Mining
Performance |
| Timeline |
| Cordoba Minerals Corp |
| Atico Mining |
Cordoba Minerals and Atico Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cordoba Minerals and Atico Mining
The main advantage of trading using opposite Cordoba Minerals and Atico Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cordoba Minerals 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.| Cordoba Minerals vs. Ressources Minieres Radisson | Cordoba Minerals vs. Galantas Gold Corp | Cordoba Minerals vs. Red Pine Exploration | Cordoba Minerals vs. Kore Mining |
| Atico Mining vs. Avrupa Minerals | Atico Mining vs. Altiplano Metals | Atico Mining vs. Cordoba Minerals Corp | Atico Mining vs. Hannan Metals |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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