Correlation Between Atalaya Mining and ETC On
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and ETC On 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 Atalaya Mining and ETC On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and ETC on CMCI, you can compare the effects of market volatilities on Atalaya Mining and ETC On 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 Atalaya Mining with a short position of ETC On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and ETC On.
Diversification Opportunities for Atalaya Mining and ETC On
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atalaya and ETC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and ETC on CMCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETC on CMCI and Atalaya 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 Atalaya Mining are associated (or correlated) with ETC On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETC on CMCI has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and ETC On go up and down completely randomly.
Pair Corralation between Atalaya Mining and ETC On
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 2.97 times more return on investment than ETC On. However, Atalaya Mining is 2.97 times more volatile than ETC on CMCI. It trades about 0.07 of its potential returns per unit of risk. ETC on CMCI is currently generating about 0.01 per unit of risk. If you would invest 17,968 in Atalaya Mining on June 21, 2024 and sell it today you would earn a total of 18,582 from holding Atalaya Mining or generate 103.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Atalaya Mining vs. ETC on CMCI
Performance |
Timeline |
Atalaya Mining |
ETC on CMCI |
Atalaya Mining and ETC On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atalaya Mining and ETC On
The main advantage of trading using opposite Atalaya Mining and ETC On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, ETC On 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 ETC On will offset losses from the drop in ETC On's long position.Atalaya Mining vs. Givaudan SA | Atalaya Mining vs. Centamin PLC | Atalaya Mining vs. EVRAZ plc | Atalaya Mining vs. Amaroq Minerals |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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