Correlation Between Systemair and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Systemair and Atalaya Mining 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 Systemair and Atalaya Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Systemair AB and Atalaya Mining, you can compare the effects of market volatilities on Systemair and Atalaya Mining 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 Systemair with a short position of Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Atalaya Mining.
Diversification Opportunities for Systemair and Atalaya Mining
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Systemair and Atalaya is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining and Systemair 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 Systemair AB are associated (or correlated) with Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of Systemair i.e., Systemair and Atalaya Mining go up and down completely randomly.
Pair Corralation between Systemair and Atalaya Mining
Assuming the 90 days trading horizon Systemair AB is expected to generate 0.97 times more return on investment than Atalaya Mining. However, Systemair AB is 1.03 times less risky than Atalaya Mining. It trades about 0.02 of its potential returns per unit of risk. Atalaya Mining is currently generating about 0.01 per unit of risk. If you would invest 7,752 in Systemair AB on October 26, 2024 and sell it today you would earn a total of 648.00 from holding Systemair AB or generate 8.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Systemair AB vs. Atalaya Mining
Performance |
| Timeline |
| Systemair AB |
| Atalaya Mining |
Systemair and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Systemair and Atalaya Mining
The main advantage of trading using opposite Systemair and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair position performs unexpectedly, Atalaya Mining 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 Atalaya Mining will offset losses from the drop in Atalaya Mining's long position.| Systemair vs. National Beverage Corp | Systemair vs. BioPharma Credit PLC | Systemair vs. Thor Mining PLC | Systemair vs. Beowulf Mining |
| Atalaya Mining vs. Morgan Advanced Materials | Atalaya Mining vs. Westlake Chemical Corp | Atalaya Mining vs. Ashtead Technology Holdings | Atalaya Mining vs. Sunny Optical Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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