Correlation Between SSR Mining and Atreca

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

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

Diversification Opportunities for SSR Mining and Atreca

-0.31

Correlation Coefficient

SSR Mining  Atreca

Very good diversification

The 3 months correlation between SSR and Atreca is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SSR Mining and Atreca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atreca Inc and SSR 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 SSR Mining are associated (or correlated) with Atreca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atreca Inc has no effect on the direction of SSR Mining i.e., SSR Mining and Atreca go up and down completely randomly.

Pair Corralation between SSR Mining and Atreca

Given the investment horizon of 90 days SSR Mining is expected to generate 0.33 times more return on investment than Atreca. However, SSR Mining is 3.03 times less risky than Atreca. It trades about -0.07 of its potential returns per unit of risk. Atreca Inc is currently generating about -0.04 per unit of risk. If you would invest  1,675  in SSR Mining on January 17, 2024 and sell it today you would lose (1,171) from holding SSR Mining or give up 69.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.48%
Values	Daily Returns

SSR Mining  vs.  Atreca Inc

SSR Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SSR Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in May 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Atreca Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atreca Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in May 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with SSR Mining and Atreca

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

The idea behind SSR Mining and Atreca Inc 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.