Correlation Between Sterling Metals and Atico Mining
Can any of the company-specific risk be diversified away by investing in both Sterling Metals and Atico Mining 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 Sterling Metals and Atico Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Metals Corp and Atico Mining, you can compare the effects of market volatilities on Sterling Metals and Atico Mining 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 Sterling Metals with a short position of Atico Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Metals and Atico Mining.
Diversification Opportunities for Sterling Metals and Atico Mining
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sterling and Atico is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Metals Corp and Atico Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atico Mining and Sterling Metals 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 Sterling Metals Corp are associated (or correlated) with Atico Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atico Mining has no effect on the direction of Sterling Metals i.e., Sterling Metals and Atico Mining go up and down completely randomly.
Pair Corralation between Sterling Metals and Atico Mining
Assuming the 90 days horizon Sterling Metals Corp is expected to under-perform the Atico Mining. In addition to that, Sterling Metals is 1.08 times more volatile than Atico Mining. It trades about -0.24 of its total potential returns per unit of risk. Atico Mining is currently generating about -0.17 per unit of volatility. If you would invest 12.00 in Atico Mining on August 25, 2024 and sell it today you would lose (2.70) from holding Atico Mining or give up 22.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sterling Metals Corp vs. Atico Mining
Performance |
| Timeline |
| Sterling Metals Corp |
| Atico Mining |
Sterling Metals and Atico Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Metals and Atico Mining
The main advantage of trading using opposite Sterling Metals and Atico Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Metals position performs unexpectedly, Atico Mining 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 Atico Mining will offset losses from the drop in Atico Mining's long position.| Sterling Metals vs. Norra Metals Corp | Sterling Metals vs. ZincX Resources Corp | Sterling Metals vs. Nuinsco Resources Limited | Sterling Metals vs. South Star Battery |
| Atico Mining vs. Ascendant Resources | Atico Mining vs. Cantex Mine Development | Atico Mining vs. Amarc Resources | Atico Mining vs. Sterling Metals 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |