Correlation Between Atico Mining and Azucar Minerals

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

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

Diversification Opportunities for Atico Mining and Azucar Minerals

-0.68

Correlation Coefficient

Atico Mining  Azucar Minerals

Excellent diversification

The 3 months correlation between Atico and Azucar is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Atico Mining and Azucar Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azucar Minerals and Atico 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 Atico Mining are associated (or correlated) with Azucar Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azucar Minerals has no effect on the direction of Atico Mining i.e., Atico Mining and Azucar Minerals go up and down completely randomly.

Pair Corralation between Atico Mining and Azucar Minerals

Assuming the 90 days horizon Atico Mining is expected to generate 0.86 times more return on investment than Azucar Minerals. However, Atico Mining is 1.16 times less risky than Azucar Minerals. It trades about 0.2 of its potential returns per unit of risk. Azucar Minerals is currently generating about 0.01 per unit of risk. If you would invest  8.70  in Atico Mining on July 3, 2025 and sell it today you would earn a total of  9.30  from holding Atico Mining or generate 106.9% return on investment over 90 days.

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

Atico Mining  vs.  Azucar Minerals

Atico Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atico Mining are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak primary indicators, Atico Mining reported solid returns over the last few months and may actually be approaching a breakup point.

Azucar Minerals

Risk-Adjusted Performance

Weakest

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

Pair Trading with Atico Mining and Azucar Minerals

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

The idea behind Atico Mining and Azucar Minerals 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.

Check out your portfolio center.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..