Correlation Between Largo Resources and United States

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

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

Diversification Opportunities for Largo Resources and United States

0.62

Correlation Coefficient

Largo Resources  United States

Poor diversification

The 3 months correlation between Largo and United is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Largo Resources and United States Antimony in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Antimony and Largo 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 Largo Resources are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Antimony has no effect on the direction of Largo Resources i.e., Largo Resources and United States go up and down completely randomly.

Pair Corralation between Largo Resources and United States

Considering the 90-day investment horizon Largo Resources is expected to under-perform the United States. But the stock apears to be less risky and, when comparing its historical volatility, Largo Resources is 1.6 times less risky than United States. The stock trades about -0.02 of its potential returns per unit of risk. The United States Antimony is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  379.00  in United States Antimony on May 7, 2025 and sell it today you would lose (24.00) from holding United States Antimony or give up 6.33% of portfolio value over 90 days.

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

Largo Resources  vs.  United States Antimony

Largo Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days Largo Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Largo Resources is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

United States Antimony

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in United States Antimony are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady primary indicators, United States may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Largo Resources and United States

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

The idea behind Largo Resources and United States Antimony 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.