Correlation Between Metals Acquisition and Roth CH

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

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

Diversification Opportunities for Metals Acquisition and Roth CH

0.0

Correlation Coefficient

Metals Acquisition  Roth CH

Pay attention - limited upside

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

Pair Corralation between Metals Acquisition and Roth CH

If you would invest (100.00) in Roth CH Acquisition on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Roth CH Acquisition or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Metals Acquisition Limited  vs.  Roth CH Acquisition

Metals Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Metals Acquisition Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Metals Acquisition is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Roth CH Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Roth CH Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Roth CH is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Metals Acquisition and Roth CH

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

The idea behind Metals Acquisition Limited and Roth CH Acquisition 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.