Correlation Between Adamera Minerals and Dios Exploration

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

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

Diversification Opportunities for Adamera Minerals and Dios Exploration

0.05

Correlation Coefficient

Adamera Minerals  Dios Exploration

Significant diversification

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

Pair Corralation between Adamera Minerals and Dios Exploration

Assuming the 90 days horizon Adamera Minerals Corp is expected to generate 3.47 times more return on investment than Dios Exploration. However, Adamera Minerals is 3.47 times more volatile than Dios Exploration. It trades about 0.05 of its potential returns per unit of risk. Dios Exploration is currently generating about 0.02 per unit of risk. If you would invest  5.08  in Adamera Minerals Corp on August 2, 2025 and sell it today you would earn a total of  0.10  from holding Adamera Minerals Corp or generate 1.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Adamera Minerals Corp  vs.  Dios Exploration

Adamera Minerals Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Adamera Minerals Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Adamera Minerals reported solid returns over the last few months and may actually be approaching a breakup point.

Dios Exploration

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dios Exploration are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Dios Exploration is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Adamera Minerals and Dios Exploration

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

The idea behind Adamera Minerals Corp and Dios Exploration 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.