Correlation Between Atlas Lithium and Gold Resource
Can any of the company-specific risk be diversified away by investing in both Atlas Lithium and Gold Resource 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 Atlas Lithium and Gold Resource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Lithium and Gold Resource, you can compare the effects of market volatilities on Atlas Lithium and Gold Resource 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 Atlas Lithium with a short position of Gold Resource. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Lithium and Gold Resource.
Diversification Opportunities for Atlas Lithium and Gold Resource
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atlas and Gold is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Lithium and Gold Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Resource and Atlas Lithium 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 Atlas Lithium are associated (or correlated) with Gold Resource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Resource has no effect on the direction of Atlas Lithium i.e., Atlas Lithium and Gold Resource go up and down completely randomly.
Pair Corralation between Atlas Lithium and Gold Resource
Given the investment horizon of 90 days Atlas Lithium is expected to generate 2.98 times less return on investment than Gold Resource. In addition to that, Atlas Lithium is 1.01 times more volatile than Gold Resource. It trades about 0.05 of its total potential returns per unit of risk. Gold Resource is currently generating about 0.14 per unit of volatility. If you would invest 46.00 in Gold Resource on August 21, 2025 and sell it today you would earn a total of 25.00 from holding Gold Resource or generate 54.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Lithium vs. Gold Resource
Performance |
| Timeline |
| Atlas Lithium |
| Gold Resource |
Atlas Lithium and Gold Resource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Lithium and Gold Resource
The main advantage of trading using opposite Atlas Lithium and Gold Resource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Lithium position performs unexpectedly, Gold Resource 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 Gold Resource will offset losses from the drop in Gold Resource's long position.| Atlas Lithium vs. NexMetals Mining Corp | Atlas Lithium vs. Brazil Potash Corp | Atlas Lithium vs. Gold Resource | Atlas Lithium vs. 5E Advanced Materials |
| Gold Resource vs. Namib Minerals Ordinary | Gold Resource vs. Brazil Potash Corp | Gold Resource vs. Atlas Lithium | Gold Resource vs. Paramount Gold Nevada |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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