Correlation Between ANDRADA MINING and CEOTRONICS

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

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

Diversification Opportunities for ANDRADA MINING and CEOTRONICS

0.27

Correlation Coefficient

ANDRADA MINING  CEOTRONICS

Modest diversification

The 3 months correlation between ANDRADA and CEOTRONICS is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ANDRADA MINING LTD and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS and ANDRADA MINING 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 ANDRADA MINING LTD are associated (or correlated) with CEOTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS has no effect on the direction of ANDRADA MINING i.e., ANDRADA MINING and CEOTRONICS go up and down completely randomly.

Pair Corralation between ANDRADA MINING and CEOTRONICS

Assuming the 90 days horizon ANDRADA MINING LTD is expected to generate 0.88 times more return on investment than CEOTRONICS. However, ANDRADA MINING LTD is 1.13 times less risky than CEOTRONICS. It trades about 0.0 of its potential returns per unit of risk. CEOTRONICS is currently generating about -0.01 per unit of risk. If you would invest  2.85  in ANDRADA MINING LTD on April 25, 2025 and sell it today you would lose (0.10) from holding ANDRADA MINING LTD or give up 3.51% of portfolio value over 90 days.

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

ANDRADA MINING LTD  vs.  CEOTRONICS

ANDRADA MINING LTD

Risk-Adjusted Performance

Weak

Over the last 90 days ANDRADA MINING LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ANDRADA MINING is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

CEOTRONICS

Risk-Adjusted Performance

Very Weak

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

Pair Trading with ANDRADA MINING and CEOTRONICS

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

The idea behind ANDRADA MINING LTD and CEOTRONICS 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.