Correlation Between Atacama Resources and Traction Uranium

Can any of the company-specific risk be diversified away by investing in both Atacama Resources and Traction Uranium 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 Traction Uranium 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 Traction Uranium Corp, you can compare the effects of market volatilities on Atacama Resources and Traction Uranium 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 Traction Uranium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atacama Resources and Traction Uranium.

Diversification Opportunities for Atacama Resources and Traction Uranium

-0.05

Correlation Coefficient

Atacama Resources  Traction Uranium

Good diversification

The 3 months correlation between Atacama and Traction is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Atacama Resources Internationa and Traction Uranium Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traction Uranium 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 Traction Uranium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traction Uranium Corp has no effect on the direction of Atacama Resources i.e., Atacama Resources and Traction Uranium go up and down completely randomly.

Pair Corralation between Atacama Resources and Traction Uranium

Given the investment horizon of 90 days Atacama Resources International is expected to generate 1.27 times more return on investment than Traction Uranium. However, Atacama Resources is 1.27 times more volatile than Traction Uranium Corp. It trades about 0.1 of its potential returns per unit of risk. Traction Uranium Corp is currently generating about 0.02 per unit of risk. If you would invest  0.15  in Atacama Resources International on May 24, 2025 and sell it today you would earn a total of  0.06  from holding Atacama Resources International or generate 40.0% return on investment over 90 days.

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

Atacama Resources Internationa  vs.  Traction Uranium Corp

Atacama Resources

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atacama Resources International are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Atacama Resources disclosed solid returns over the last few months and may actually be approaching a breakup point.

Traction Uranium Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Traction Uranium Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Traction Uranium may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Atacama Resources and Traction Uranium

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

The idea behind Atacama Resources International and Traction Uranium 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.