Correlation Between A2 Milk and Atlas Lithium
Can any of the company-specific risk be diversified away by investing in both A2 Milk and Atlas Lithium 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 A2 Milk and Atlas Lithium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The a2 Milk and Atlas Lithium, you can compare the effects of market volatilities on A2 Milk and Atlas Lithium 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 A2 Milk with a short position of Atlas Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of A2 Milk and Atlas Lithium.
Diversification Opportunities for A2 Milk and Atlas Lithium
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ACOPF and Atlas is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding The a2 Milk and Atlas Lithium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Lithium and A2 Milk 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 The a2 Milk are associated (or correlated) with Atlas Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Lithium has no effect on the direction of A2 Milk i.e., A2 Milk and Atlas Lithium go up and down completely randomly.
Pair Corralation between A2 Milk and Atlas Lithium
Assuming the 90 days horizon A2 Milk is expected to generate 1.69 times less return on investment than Atlas Lithium. But when comparing it to its historical volatility, The a2 Milk is 2.11 times less risky than Atlas Lithium. It trades about 0.05 of its potential returns per unit of risk. Atlas Lithium is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 494.00 in Atlas Lithium on August 20, 2025 and sell it today you would earn a total of 16.00 from holding Atlas Lithium or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
The a2 Milk vs. Atlas Lithium
Performance |
| Timeline |
| a2 Milk |
| Atlas Lithium |
A2 Milk and Atlas Lithium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A2 Milk and Atlas Lithium
The main advantage of trading using opposite A2 Milk and Atlas Lithium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A2 Milk position performs unexpectedly, Atlas Lithium 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 Atlas Lithium will offset losses from the drop in Atlas Lithium's long position.| A2 Milk vs. Glanbia plc | A2 Milk vs. China Feihe Limited | A2 Milk vs. Indofood Sukses Makmur | A2 Milk vs. NH Foods Ltd |
| Atlas Lithium vs. NexMetals Mining Corp | Atlas Lithium vs. Brazil Potash Corp | Atlas Lithium vs. Gold Resource | Atlas Lithium vs. 5E Advanced Materials |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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