Correlation Between New Amer and Atacama Resources
Can any of the company-specific risk be diversified away by investing in both New Amer and Atacama 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 New Amer and Atacama Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Amer Energy and Atacama Resources International, you can compare the effects of market volatilities on New Amer and Atacama 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 New Amer with a short position of Atacama Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Amer and Atacama Resources.
Diversification Opportunities for New Amer and Atacama Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Atacama is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Amer Energy and Atacama Resources Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atacama Resources and New Amer 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 New Amer Energy are associated (or correlated) with Atacama Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atacama Resources has no effect on the direction of New Amer i.e., New Amer and Atacama Resources go up and down completely randomly.
Pair Corralation between New Amer and Atacama Resources
If you would invest 0.80 in Atacama Resources International on November 27, 2024 and sell it today you would lose (0.60) from holding Atacama Resources International or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
New Amer Energy vs. Atacama Resources Internationa
Performance |
| Timeline |
| New Amer Energy |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Atacama Resources |
New Amer and Atacama Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Amer and Atacama Resources
The main advantage of trading using opposite New Amer and Atacama Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Amer position performs unexpectedly, Atacama 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 Atacama Resources will offset losses from the drop in Atacama Resources' long position.| New Amer vs. Cosmos Group Holdings | New Amer vs. CYIOS | New Amer vs. Mill City Ventures | New Amer vs. Finance of America |
| Atacama Resources vs. Huntsman Exploration | Atacama Resources vs. Aurelia Metals Limited | Atacama Resources vs. Adriatic Metals PLC | Atacama Resources vs. American Helium |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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