Correlation Between Atacama Resources and Cardiff Lexington

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

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

Diversification Opportunities for Atacama Resources and Cardiff Lexington

0.09

Correlation Coefficient

Atacama Resources  Cardiff Lexington

Significant diversification

The 3 months correlation between Atacama and Cardiff is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Atacama Resources Internationa and Cardiff Lexington Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardiff Lexington Corp and Atacama 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 Atacama Resources International are associated (or correlated) with Cardiff Lexington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardiff Lexington Corp has no effect on the direction of Atacama Resources i.e., Atacama Resources and Cardiff Lexington go up and down completely randomly.

Pair Corralation between Atacama Resources and Cardiff Lexington

Given the investment horizon of 90 days Atacama Resources is expected to generate 2.68 times less return on investment than Cardiff Lexington. But when comparing it to its historical volatility, Atacama Resources International is 2.27 times less risky than Cardiff Lexington. It trades about 0.08 of its potential returns per unit of risk. Cardiff Lexington Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  310.00  in Cardiff Lexington Corp on May 1, 2025 and sell it today you would earn a total of  190.00  from holding Cardiff Lexington Corp or generate 61.29% return on investment over 90 days.

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

Atacama Resources Internationa  vs.  Cardiff Lexington Corp

Atacama Resources

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Atacama Resources International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Atacama Resources disclosed solid returns over the last few months and may actually be approaching a breakup point.

Cardiff Lexington Corp

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cardiff Lexington Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain forward indicators, Cardiff Lexington showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atacama Resources and Cardiff Lexington

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

The idea behind Atacama Resources International and Cardiff Lexington Corp 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.