Correlation Between EMX Royalty and Atico Mining
Can any of the company-specific risk be diversified away by investing in both EMX Royalty 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 EMX Royalty and Atico Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMX Royalty Corp and Atico Mining, you can compare the effects of market volatilities on EMX Royalty 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 EMX Royalty with a short position of Atico Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMX Royalty and Atico Mining.
Diversification Opportunities for EMX Royalty and Atico Mining
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between EMX and Atico is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding EMX Royalty Corp and Atico Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atico Mining and EMX Royalty 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 EMX Royalty 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 EMX Royalty i.e., EMX Royalty and Atico Mining go up and down completely randomly.
Pair Corralation between EMX Royalty and Atico Mining
Considering the 90-day investment horizon EMX Royalty Corp is expected to generate 0.35 times more return on investment than Atico Mining. However, EMX Royalty Corp is 2.83 times less risky than Atico Mining. It trades about -0.22 of its potential returns per unit of risk. Atico Mining is currently generating about -0.12 per unit of risk. If you would invest 192.00 in EMX Royalty Corp on August 29, 2024 and sell it today you would lose (18.00) from holding EMX Royalty Corp or give up 9.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
EMX Royalty Corp vs. Atico Mining
Performance |
| Timeline |
| EMX Royalty Corp |
| Atico Mining |
EMX Royalty and Atico Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMX Royalty and Atico Mining
The main advantage of trading using opposite EMX Royalty and Atico Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMX Royalty 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.| EMX Royalty vs. Metalla Royalty Streaming | EMX Royalty vs. Osisko Gold Ro | EMX Royalty vs. Equinox Gold Corp | EMX Royalty vs. SilverCrest Metals |
| Atico Mining vs. Silver Hammer Mining | Atico Mining vs. Reyna Silver Corp | Atico Mining vs. Guanajuato Silver | Atico Mining vs. Silver One Resources |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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