Correlation Between Atalaya Mining and Ally Financial
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Ally Financial 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 Ally Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Ally Financial, you can compare the effects of market volatilities on Atalaya Mining and Ally Financial 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 Ally Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Ally Financial.
Diversification Opportunities for Atalaya Mining and Ally Financial
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atalaya and Ally is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Ally Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ally Financial 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 Ally Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ally Financial has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Ally Financial go up and down completely randomly.
Pair Corralation between Atalaya Mining and Ally Financial
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 1.15 times more return on investment than Ally Financial. However, Atalaya Mining is 1.15 times more volatile than Ally Financial. It trades about 0.2 of its potential returns per unit of risk. Ally Financial is currently generating about 0.09 per unit of risk. If you would invest 33,950 in Atalaya Mining on September 14, 2024 and sell it today you would earn a total of 2,950 from holding Atalaya Mining or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atalaya Mining vs. Ally Financial
Performance |
| Timeline |
| Atalaya Mining |
| Ally Financial |
Atalaya Mining and Ally Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Ally Financial
The main advantage of trading using opposite Atalaya Mining and Ally Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Ally Financial 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 Ally Financial will offset losses from the drop in Ally Financial's long position.| Atalaya Mining vs. Lindsell Train Investment | Atalaya Mining vs. Empire Metals Limited | Atalaya Mining vs. Wheaton Precious Metals | Atalaya Mining vs. GoldMining |
| Ally Financial vs. Cars Inc | Ally Financial vs. Caledonia Mining | Ally Financial vs. CAP LEASE AVIATION | Ally Financial vs. Atalaya Mining |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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