Correlation Between Bluestone Resources and ATAC Resources

Can any of the company-specific risk be diversified away by investing in both Bluestone Resources and ATAC 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 Bluestone Resources and ATAC Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bluestone Resources and ATAC Resources, you can compare the effects of market volatilities on Bluestone Resources and ATAC 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 Bluestone Resources with a short position of ATAC Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluestone Resources and ATAC Resources.

Diversification Opportunities for Bluestone Resources and ATAC Resources

0.25

Correlation Coefficient

Bluestone Resources  ATAC Resources

Modest diversification

The 3 months correlation between Bluestone and ATAC is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Bluestone Resources and ATAC Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATAC Resources and Bluestone Resources 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 Bluestone Resources are associated (or correlated) with ATAC Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATAC Resources has no effect on the direction of Bluestone Resources i.e., Bluestone Resources and ATAC Resources go up and down completely randomly.

Pair Corralation between Bluestone Resources and ATAC Resources

If you would invest  22.00  in Bluestone Resources on September 15, 2024 and sell it today you would earn a total of  0.00  from holding Bluestone Resources or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Bluestone Resources  vs.  ATAC Resources

Bluestone Resources

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bluestone Resources are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Bluestone Resources may actually be approaching a critical reversion point that can send shares even higher in January 2025.

ATAC Resources

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATAC Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, ATAC Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Bluestone Resources and ATAC Resources

The main advantage of trading using opposite Bluestone Resources and ATAC Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluestone Resources position performs unexpectedly, ATAC 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 ATAC Resources will offset losses from the drop in ATAC Resources' long position.

The idea behind Bluestone Resources and ATAC Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..