Correlation Between Arizona Sonoran and ATEX Resources

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

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

Diversification Opportunities for Arizona Sonoran and ATEX Resources

0.18

Correlation Coefficient

Arizona Sonoran  ATEX Resources

Average diversification

The 3 months correlation between Arizona and ATEX is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Arizona Sonoran Copper and ATEX Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATEX Resources and Arizona Sonoran 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 Arizona Sonoran Copper are associated (or correlated) with ATEX Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATEX Resources has no effect on the direction of Arizona Sonoran i.e., Arizona Sonoran and ATEX Resources go up and down completely randomly.

Pair Corralation between Arizona Sonoran and ATEX Resources

Assuming the 90 days trading horizon Arizona Sonoran Copper is expected to generate 0.81 times more return on investment than ATEX Resources. However, Arizona Sonoran Copper is 1.24 times less risky than ATEX Resources. It trades about 0.06 of its potential returns per unit of risk. ATEX Resources is currently generating about 0.01 per unit of risk. If you would invest  217.00  in Arizona Sonoran Copper on April 23, 2025 and sell it today you would earn a total of  15.00  from holding Arizona Sonoran Copper or generate 6.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Arizona Sonoran Copper  vs.  ATEX Resources

Arizona Sonoran Copper

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Arizona Sonoran Copper are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Arizona Sonoran may actually be approaching a critical reversion point that can send shares even higher in August 2025.

ATEX Resources

Risk-Adjusted Performance

Weak

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

Pair Trading with Arizona Sonoran and ATEX Resources

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

The idea behind Arizona Sonoran Copper and ATEX 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..