Correlation Between Lomiko Metals and Great Atlantic

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

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

Diversification Opportunities for Lomiko Metals and Great Atlantic

-0.23

Correlation Coefficient

Lomiko Metals  Great Atlantic

Very good diversification

The 3 months correlation between Lomiko and Great is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lomiko Metals and Great Atlantic Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Atlantic Resources and Lomiko 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 Lomiko Metals are associated (or correlated) with Great Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Atlantic Resources has no effect on the direction of Lomiko Metals i.e., Lomiko Metals and Great Atlantic go up and down completely randomly.

Pair Corralation between Lomiko Metals and Great Atlantic

Assuming the 90 days horizon Lomiko Metals is expected to generate 0.67 times more return on investment than Great Atlantic. However, Lomiko Metals is 1.5 times less risky than Great Atlantic. It trades about 0.14 of its potential returns per unit of risk. Great Atlantic Resources is currently generating about -0.02 per unit of risk. If you would invest  13.00  in Lomiko Metals on December 2, 2024 and sell it today you would earn a total of  5.00  from holding Lomiko Metals or generate 38.46% return on investment over 90 days.

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

Lomiko Metals  vs.  Great Atlantic Resources

Lomiko Metals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lomiko Metals are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Lomiko Metals showed solid returns over the last few months and may actually be approaching a breakup point.

Great Atlantic Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Great Atlantic Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Lomiko Metals and Great Atlantic

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

The idea behind Lomiko Metals and Great Atlantic Resources 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.