Correlation Between Altamira Gold and Hannan Metals
Can any of the company-specific risk be diversified away by investing in both Altamira Gold and Hannan Metals 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 Altamira Gold and Hannan Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altamira Gold Corp and Hannan Metals, you can compare the effects of market volatilities on Altamira Gold and Hannan Metals 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 Altamira Gold with a short position of Hannan Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altamira Gold and Hannan Metals.
Diversification Opportunities for Altamira Gold and Hannan Metals
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Altamira and Hannan is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Altamira Gold Corp and Hannan Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannan Metals and Altamira Gold 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 Altamira Gold Corp are associated (or correlated) with Hannan Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannan Metals has no effect on the direction of Altamira Gold i.e., Altamira Gold and Hannan Metals go up and down completely randomly.
Pair Corralation between Altamira Gold and Hannan Metals
Assuming the 90 days horizon Altamira Gold Corp is expected to under-perform the Hannan Metals. But the pink sheet apears to be less risky and, when comparing its historical volatility, Altamira Gold Corp is 1.14 times less risky than Hannan Metals. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Hannan Metals is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 39.00 in Hannan Metals on September 25, 2024 and sell it today you would earn a total of 10.00 from holding Hannan Metals or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Altamira Gold Corp vs. Hannan Metals
Performance |
| Timeline |
| Altamira Gold Corp |
| Hannan Metals |
Altamira Gold and Hannan Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altamira Gold and Hannan Metals
The main advantage of trading using opposite Altamira Gold and Hannan Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altamira Gold position performs unexpectedly, Hannan Metals 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 Hannan Metals will offset losses from the drop in Hannan Metals' long position.| Altamira Gold vs. Endurance Gold | Altamira Gold vs. Red Pine Exploration | Altamira Gold vs. Grande Portage Resources | Altamira Gold vs. Tectonic Metals |
| Hannan Metals vs. Puma Exploration | Hannan Metals vs. Sixty North Gold | Hannan Metals vs. Red Pine Exploration | Hannan Metals vs. Altamira Gold 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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