Correlation Between Atalaya Mining and Hershey
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Hershey 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 Hershey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Hershey Co, you can compare the effects of market volatilities on Atalaya Mining and Hershey 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 Hershey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Hershey.
Diversification Opportunities for Atalaya Mining and Hershey
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atalaya and Hershey is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Hershey Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hershey 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 Hershey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hershey has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Hershey go up and down completely randomly.
Pair Corralation between Atalaya Mining and Hershey
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 0.59 times more return on investment than Hershey. However, Atalaya Mining is 1.71 times less risky than Hershey. It trades about 0.0 of its potential returns per unit of risk. Hershey Co is currently generating about -0.02 per unit of risk. If you would invest 35,100 in Atalaya Mining on September 28, 2024 and sell it today you would lose (100.00) from holding Atalaya Mining or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atalaya Mining vs. Hershey Co
Performance |
| Timeline |
| Atalaya Mining |
| Hershey |
Atalaya Mining and Hershey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Hershey
The main advantage of trading using opposite Atalaya Mining and Hershey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Hershey 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 Hershey will offset losses from the drop in Hershey's long position.| Atalaya Mining vs. Givaudan SA | Atalaya Mining vs. Antofagasta PLC | Atalaya Mining vs. Ferrexpo PLC | Atalaya Mining vs. Amaroq Minerals |
| Hershey vs. Symphony Environmental Technologies | Hershey vs. Atalaya Mining | Hershey vs. Hochschild Mining plc | Hershey vs. Silver Bullet Data |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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