Correlation Between ArborGen Holdings and Atico Mining
Can any of the company-specific risk be diversified away by investing in both ArborGen Holdings 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 ArborGen Holdings and Atico Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ArborGen Holdings Limited and Atico Mining, you can compare the effects of market volatilities on ArborGen Holdings 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 ArborGen Holdings with a short position of Atico Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ArborGen Holdings and Atico Mining.
Diversification Opportunities for ArborGen Holdings and Atico Mining
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ArborGen and Atico is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding ArborGen Holdings Limited and Atico Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atico Mining and ArborGen Holdings 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 ArborGen Holdings Limited 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 ArborGen Holdings i.e., ArborGen Holdings and Atico Mining go up and down completely randomly.
Pair Corralation between ArborGen Holdings and Atico Mining
Assuming the 90 days horizon ArborGen Holdings is expected to generate 6.13 times less return on investment than Atico Mining. But when comparing it to its historical volatility, ArborGen Holdings Limited is 1.38 times less risky than Atico Mining. It trades about 0.02 of its potential returns per unit of risk. Atico Mining is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Atico Mining on August 27, 2025 and sell it today you would earn a total of 3.00 from holding Atico Mining or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ArborGen Holdings Limited vs. Atico Mining
Performance |
| Timeline |
| ArborGen Holdings |
| Atico Mining |
ArborGen Holdings and Atico Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ArborGen Holdings and Atico Mining
The main advantage of trading using opposite ArborGen Holdings and Atico Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ArborGen Holdings 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.| ArborGen Holdings vs. Coeur Mining | ArborGen Holdings vs. Evolution Mining Limited | ArborGen Holdings vs. Magic Software Enterprises | ArborGen Holdings vs. Hunter Creek Mining |
| Atico Mining vs. Applied Materials | Atico Mining vs. Morgan Advanced Materials | Atico Mining vs. Essential Utilities | Atico Mining vs. ISE Chemicals |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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