Correlation Between Ritchie Bros and Global Atomic
Can any of the company-specific risk be diversified away by investing in both Ritchie Bros 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 Ritchie Bros and Global Atomic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ritchie Bros Auctioneers and Global Atomic Corp, you can compare the effects of market volatilities on Ritchie Bros 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 Ritchie Bros with a short position of Global Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ritchie Bros and Global Atomic.
Diversification Opportunities for Ritchie Bros and Global Atomic
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ritchie and Global is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ritchie Bros Auctioneers 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 Ritchie Bros 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 Ritchie Bros Auctioneers 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 Ritchie Bros i.e., Ritchie Bros and Global Atomic go up and down completely randomly.
Pair Corralation between Ritchie Bros and Global Atomic
Assuming the 90 days trading horizon Ritchie Bros Auctioneers is expected to generate 0.31 times more return on investment than Global Atomic. However, Ritchie Bros Auctioneers is 3.22 times less risky than Global Atomic. It trades about 0.08 of its potential returns per unit of risk. Global Atomic Corp is currently generating about -0.03 per unit of risk. If you would invest 7,541 in Ritchie Bros Auctioneers on January 17, 2025 and sell it today you would earn a total of 5,857 from holding Ritchie Bros Auctioneers or generate 77.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ritchie Bros Auctioneers vs. Global Atomic Corp
Performance |
| Timeline |
| Ritchie Bros Auctioneers |
| Global Atomic Corp |
Ritchie Bros and Global Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ritchie Bros and Global Atomic
The main advantage of trading using opposite Ritchie Bros and Global Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ritchie Bros 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.| Ritchie Bros vs. Toromont Industries | Ritchie Bros vs. Stantec | Ritchie Bros vs. Finning International | Ritchie Bros vs. FirstService Corp |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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