Correlation Between Picton Mahoney and Global Atomic
Can any of the company-specific risk be diversified away by investing in both Picton Mahoney and Global Atomic 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 Picton Mahoney and Global Atomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Picton Mahoney Fortified and Global Atomic Corp, you can compare the effects of market volatilities on Picton Mahoney and Global Atomic 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 Picton Mahoney with a short position of Global Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Picton Mahoney and Global Atomic.
Diversification Opportunities for Picton Mahoney and Global Atomic
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Picton and Global is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Picton Mahoney Fortified and Global Atomic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Atomic Corp and Picton Mahoney 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 Picton Mahoney Fortified are associated (or correlated) with Global Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Atomic Corp has no effect on the direction of Picton Mahoney i.e., Picton Mahoney and Global Atomic go up and down completely randomly.
Pair Corralation between Picton Mahoney and Global Atomic
Assuming the 90 days trading horizon Picton Mahoney Fortified is expected to generate 0.11 times more return on investment than Global Atomic. However, Picton Mahoney Fortified is 8.98 times less risky than Global Atomic. It trades about -0.16 of its potential returns per unit of risk. Global Atomic Corp is currently generating about -0.14 per unit of risk. If you would invest 2,115 in Picton Mahoney Fortified on December 11, 2024 and sell it today you would lose (116.00) from holding Picton Mahoney Fortified or give up 5.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Picton Mahoney Fortified vs. Global Atomic Corp
Performance |
| Timeline |
| Picton Mahoney Fortified |
| Global Atomic Corp |
Picton Mahoney and Global Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Picton Mahoney and Global Atomic
The main advantage of trading using opposite Picton Mahoney and Global Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Picton Mahoney position performs unexpectedly, Global Atomic 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 Global Atomic will offset losses from the drop in Global Atomic's long position.| Picton Mahoney vs. Picton Mahoney Fortified | Picton Mahoney vs. Picton Mahoney Fortified | Picton Mahoney vs. NBI Liquid Alternatives | Picton Mahoney vs. Picton Mahoney Fortified |
| Global Atomic vs. enCore Energy Corp | Global Atomic vs. GoviEx Uranium | Global Atomic vs. Baselode Energy Corp | Global Atomic vs. Sprott Physical Uranium |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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