Correlation Between Thyssenkrupp and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Thyssenkrupp 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 Thyssenkrupp and Atalaya Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thyssenkrupp AG ON and Atalaya Mining, you can compare the effects of market volatilities on Thyssenkrupp 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 Thyssenkrupp with a short position of Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thyssenkrupp and Atalaya Mining.
Diversification Opportunities for Thyssenkrupp and Atalaya Mining
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thyssenkrupp and Atalaya is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Thyssenkrupp AG ON and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining and Thyssenkrupp 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 Thyssenkrupp AG ON 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 Thyssenkrupp i.e., Thyssenkrupp and Atalaya Mining go up and down completely randomly.
Pair Corralation between Thyssenkrupp and Atalaya Mining
Assuming the 90 days trading horizon Thyssenkrupp AG ON is expected to under-perform the Atalaya Mining. In addition to that, Thyssenkrupp is 1.1 times more volatile than Atalaya Mining. It trades about -0.05 of its total potential returns per unit of risk. Atalaya Mining is currently generating about 0.04 per unit of volatility. If you would invest 30,311 in Atalaya Mining on September 14, 2024 and sell it today you would earn a total of 6,589 from holding Atalaya Mining or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thyssenkrupp AG ON vs. Atalaya Mining
Performance |
| Timeline |
| Thyssenkrupp AG ON |
| Atalaya Mining |
Thyssenkrupp and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thyssenkrupp and Atalaya Mining
The main advantage of trading using opposite Thyssenkrupp and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thyssenkrupp 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.| Thyssenkrupp vs. Atalaya Mining | Thyssenkrupp vs. Zurich Insurance Group | Thyssenkrupp vs. Molson Coors Beverage | Thyssenkrupp vs. Tyson Foods Cl |
| Atalaya Mining vs. Lindsell Train Investment | Atalaya Mining vs. Empire Metals Limited | Atalaya Mining vs. Wheaton Precious Metals | Atalaya Mining vs. GoldMining |
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.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |