Correlation Between Iron Mountain and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Iron Mountain 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 Iron Mountain and Atalaya Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iron Mountain and Atalaya Mining, you can compare the effects of market volatilities on Iron Mountain 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 Iron Mountain with a short position of Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iron Mountain and Atalaya Mining.
Diversification Opportunities for Iron Mountain and Atalaya Mining
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Iron and Atalaya is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Iron Mountain and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining and Iron Mountain 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 Iron Mountain 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 Iron Mountain i.e., Iron Mountain and Atalaya Mining go up and down completely randomly.
Pair Corralation between Iron Mountain and Atalaya Mining
Assuming the 90 days trading horizon Iron Mountain is expected to generate 0.71 times more return on investment than Atalaya Mining. However, Iron Mountain is 1.4 times less risky than Atalaya Mining. It trades about 0.11 of its potential returns per unit of risk. Atalaya Mining is currently generating about 0.03 per unit of risk. If you would invest 5,085 in Iron Mountain on August 26, 2024 and sell it today you would earn a total of 6,821 from holding Iron Mountain or generate 134.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Iron Mountain vs. Atalaya Mining
Performance |
| Timeline |
| Iron Mountain |
| Atalaya Mining |
Iron Mountain and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iron Mountain and Atalaya Mining
The main advantage of trading using opposite Iron Mountain and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iron Mountain 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.| Iron Mountain vs. Samsung Electronics Co | Iron Mountain vs. Samsung Electronics Co | Iron Mountain vs. Hyundai Motor | Iron Mountain vs. Toyota Motor Corp |
| Atalaya Mining vs. Sabre Insurance Group | Atalaya Mining vs. Check Point Software | Atalaya Mining vs. Zurich Insurance Group | Atalaya Mining vs. Iron Mountain |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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