Correlation Between Atalaya Mining and Westlake Chemical
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Westlake Chemical 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 Westlake Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Westlake Chemical Corp, you can compare the effects of market volatilities on Atalaya Mining and Westlake Chemical 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 Westlake Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Westlake Chemical.
Diversification Opportunities for Atalaya Mining and Westlake Chemical
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atalaya and Westlake is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Westlake Chemical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westlake Chemical Corp 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 Westlake Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westlake Chemical Corp has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Westlake Chemical go up and down completely randomly.
Pair Corralation between Atalaya Mining and Westlake Chemical
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 1.11 times more return on investment than Westlake Chemical. However, Atalaya Mining is 1.11 times more volatile than Westlake Chemical Corp. It trades about 0.02 of its potential returns per unit of risk. Westlake Chemical Corp is currently generating about 0.01 per unit of risk. If you would invest 31,878 in Atalaya Mining on August 26, 2024 and sell it today you would earn a total of 3,022 from holding Atalaya Mining or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.91% |
| Values | Daily Returns |
Atalaya Mining vs. Westlake Chemical Corp
Performance |
| Timeline |
| Atalaya Mining |
| Westlake Chemical Corp |
Atalaya Mining and Westlake Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Westlake Chemical
The main advantage of trading using opposite Atalaya Mining and Westlake Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Westlake Chemical 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 Westlake Chemical will offset losses from the drop in Westlake Chemical's long position.| Atalaya Mining vs. Givaudan SA | Atalaya Mining vs. Antofagasta PLC | Atalaya Mining vs. Amaroq Minerals | Atalaya Mining vs. Anglo Asian Mining |
| Westlake Chemical vs. Samsung Electronics Co | Westlake Chemical vs. Samsung Electronics Co | Westlake Chemical vs. Hyundai Motor | Westlake Chemical vs. Toyota Motor Corp |
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.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |