Correlation Between Maritime Resources and Altiplano Metals

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

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

Diversification Opportunities for Maritime Resources and Altiplano Metals

-0.49

Correlation Coefficient

Maritime Resources  Altiplano Metals

Very good diversification

The 3 months correlation between Maritime and Altiplano is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Maritime Resources Corp and Altiplano Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altiplano Metals and Maritime Resources 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 Maritime Resources Corp are associated (or correlated) with Altiplano Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altiplano Metals has no effect on the direction of Maritime Resources i.e., Maritime Resources and Altiplano Metals go up and down completely randomly.

Pair Corralation between Maritime Resources and Altiplano Metals

Assuming the 90 days horizon Maritime Resources Corp is expected to generate 1.09 times more return on investment than Altiplano Metals. However, Maritime Resources is 1.09 times more volatile than Altiplano Metals. It trades about 0.15 of its potential returns per unit of risk. Altiplano Metals is currently generating about -0.14 per unit of risk. If you would invest  3.50  in Maritime Resources Corp on September 3, 2024 and sell it today you would earn a total of  2.00  from holding Maritime Resources Corp or generate 57.14% return on investment over 90 days.

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

Maritime Resources Corp  vs.  Altiplano Metals

Maritime Resources Corp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Maritime Resources Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Maritime Resources showed solid returns over the last few months and may actually be approaching a breakup point.

Altiplano Metals

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Maritime Resources and Altiplano Metals

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

The idea behind Maritime Resources Corp and Altiplano Metals 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.