Correlation Between United States and Global Atomic

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

By analyzing existing cross correlation between United States Antimony and Global Atomic Corp, you can compare the effects of market volatilities on United States 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 United States with a short position of Global Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Global Atomic.

Diversification Opportunities for United States and Global Atomic

0.43

Correlation Coefficient

United States  Global Atomic

Very weak diversification

The 3 months correlation between United and Global is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding United States Antimony 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 United States 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 United States Antimony 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 United States i.e., United States and Global Atomic go up and down completely randomly.

Pair Corralation between United States and Global Atomic

Given the investment horizon of 90 days United States Antimony is expected to generate 1.21 times more return on investment than Global Atomic. However, United States is 1.21 times more volatile than Global Atomic Corp. It trades about 0.05 of its potential returns per unit of risk. Global Atomic Corp is currently generating about -0.02 per unit of risk. If you would invest  70.00  in United States Antimony on September 2, 2024 and sell it today you would earn a total of  6.00  from holding United States Antimony or generate 8.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

United States Antimony  vs.  Global Atomic Corp

United States Antimony

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in United States Antimony are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting primary indicators, United States showed solid returns over the last few months and may actually be approaching a breakup point.

Global Atomic Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with United States and Global Atomic

The main advantage of trading using opposite United States and Global Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.

The idea behind United States Antimony and Global Atomic Corp 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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.