Correlation Between Kinnevik Investment and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Kinnevik Investment 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 Kinnevik Investment and Atalaya Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kinnevik Investment AB and Atalaya Mining, you can compare the effects of market volatilities on Kinnevik Investment 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 Kinnevik Investment with a short position of Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kinnevik Investment and Atalaya Mining.
Diversification Opportunities for Kinnevik Investment and Atalaya Mining
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kinnevik and Atalaya is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Kinnevik Investment AB and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining and Kinnevik Investment 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 Kinnevik Investment 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 Kinnevik Investment i.e., Kinnevik Investment and Atalaya Mining go up and down completely randomly.
Pair Corralation between Kinnevik Investment and Atalaya Mining
Assuming the 90 days trading horizon Kinnevik Investment AB is expected to generate 1.04 times more return on investment than Atalaya Mining. However, Kinnevik Investment is 1.04 times more volatile than Atalaya Mining. It trades about 0.23 of its potential returns per unit of risk. Atalaya Mining is currently generating about 0.17 per unit of risk. If you would invest 7,961 in Kinnevik Investment AB on November 28, 2024 and sell it today you would earn a total of 884.00 from holding Kinnevik Investment AB or generate 11.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kinnevik Investment AB vs. Atalaya Mining
Performance |
| Timeline |
| Kinnevik Investment |
| Atalaya Mining |
Kinnevik Investment and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kinnevik Investment and Atalaya Mining
The main advantage of trading using opposite Kinnevik Investment and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kinnevik Investment 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.| Kinnevik Investment vs. Liberty Media Corp | Kinnevik Investment vs. Verizon Communications | Kinnevik Investment vs. G5 Entertainment AB | Kinnevik Investment vs. MTI Wireless Edge |
| Atalaya Mining vs. Concurrent Technologies Plc | Atalaya Mining vs. Iron Mountain | Atalaya Mining vs. Dentsply Sirona | Atalaya Mining vs. Sartorius Stedim Biotech |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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