Correlation Between ACDC Metals and AMOTIV

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

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

Diversification Opportunities for ACDC Metals and AMOTIV

0.0

Correlation Coefficient

ACDC Metals  AMOTIV

Pay attention - limited upside

The 3 months correlation between ACDC and AMOTIV is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ACDC Metals and AMOTIV LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMOTIV LTD and ACDC Metals 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 ACDC Metals are associated (or correlated) with AMOTIV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMOTIV LTD has no effect on the direction of ACDC Metals i.e., ACDC Metals and AMOTIV go up and down completely randomly.

Pair Corralation between ACDC Metals and AMOTIV

If you would invest  5.10  in ACDC Metals on October 8, 2024 and sell it today you would earn a total of  0.40  from holding ACDC Metals or generate 7.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

ACDC Metals  vs.  AMOTIV LTD

ACDC Metals

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ACDC Metals are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, ACDC Metals may actually be approaching a critical reversion point that can send shares even higher in February 2025.

AMOTIV LTD

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days AMOTIV LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AMOTIV is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with ACDC Metals and AMOTIV

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

The idea behind ACDC Metals and AMOTIV LTD 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.

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.