Correlation Between Global Atomic and Boss Resources
Can any of the company-specific risk be diversified away by investing in both Global Atomic and Boss 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 Global Atomic and Boss Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Atomic Corp and Boss Resources, you can compare the effects of market volatilities on Global Atomic and Boss 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 Global Atomic with a short position of Boss Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Atomic and Boss Resources.
Diversification Opportunities for Global Atomic and Boss Resources
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Boss is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Global Atomic Corp and Boss Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boss Resources and Global Atomic 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 Global Atomic Corp are associated (or correlated) with Boss Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boss Resources has no effect on the direction of Global Atomic i.e., Global Atomic and Boss Resources go up and down completely randomly.
Pair Corralation between Global Atomic and Boss Resources
Assuming the 90 days horizon Global Atomic is expected to generate 2.15 times less return on investment than Boss Resources. But when comparing it to its historical volatility, Global Atomic Corp is 1.05 times less risky than Boss Resources. It trades about 0.15 of its potential returns per unit of risk. Boss Resources is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 149.00 in Boss Resources on October 22, 2024 and sell it today you would earn a total of 32.00 from holding Boss Resources or generate 21.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Atomic Corp vs. Boss Resources
Performance |
| Timeline |
| Global Atomic Corp |
| Boss Resources |
Global Atomic and Boss Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Atomic and Boss Resources
The main advantage of trading using opposite Global Atomic and Boss Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Atomic position performs unexpectedly, Boss 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 Boss Resources will offset losses from the drop in Boss Resources' long position.| Global Atomic vs. NGEx Minerals | Global Atomic vs. Boss Resources | Global Atomic vs. Forum Energy Metals | Global Atomic vs. Kraken Energy Corp |
| Boss Resources vs. NGEx Minerals | Boss Resources vs. Forum Energy Metals | Boss Resources vs. Global Atomic Corp | Boss Resources vs. Kraken Energy 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |