Correlation Between Great Atlantic and Lomiko Metals
Can any of the company-specific risk be diversified away by investing in both Great Atlantic and Lomiko 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 Great Atlantic and Lomiko Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Atlantic Resources and Lomiko Metals, you can compare the effects of market volatilities on Great Atlantic and Lomiko 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 Great Atlantic with a short position of Lomiko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Atlantic and Lomiko Metals.
Diversification Opportunities for Great Atlantic and Lomiko Metals
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Great and Lomiko is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Great Atlantic Resources and Lomiko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lomiko Metals and Great Atlantic 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 Great Atlantic Resources are associated (or correlated) with Lomiko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lomiko Metals has no effect on the direction of Great Atlantic i.e., Great Atlantic and Lomiko Metals go up and down completely randomly.
Pair Corralation between Great Atlantic and Lomiko Metals
Given the investment horizon of 90 days Great Atlantic Resources is expected to generate 2.19 times more return on investment than Lomiko Metals. However, Great Atlantic is 2.19 times more volatile than Lomiko Metals. It trades about 0.01 of its potential returns per unit of risk. Lomiko Metals is currently generating about -0.25 per unit of risk. If you would invest 7.00 in Great Atlantic Resources on September 1, 2024 and sell it today you would lose (0.50) from holding Great Atlantic Resources or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Atlantic Resources vs. Lomiko Metals
Performance |
| Timeline |
| Great Atlantic Resources |
| Lomiko Metals |
Great Atlantic and Lomiko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Atlantic and Lomiko Metals
The main advantage of trading using opposite Great Atlantic and Lomiko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Atlantic position performs unexpectedly, Lomiko 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 Lomiko Metals will offset losses from the drop in Lomiko Metals' long position.| Great Atlantic vs. Kiplin Metals | Great Atlantic vs. Pure Energy Minerals | Great Atlantic vs. Noram Lithium Corp | Great Atlantic vs. Minnova Corp |
| Lomiko Metals vs. Sangoma Technologies Corp | Lomiko Metals vs. AGF Management Limited | Lomiko Metals vs. Metalero Mining Corp | Lomiko Metals vs. Altair 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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