Correlation Between Atalaya Mining and Erste Group
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Erste Group 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 Erste Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Erste Group Bank, you can compare the effects of market volatilities on Atalaya Mining and Erste Group 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 Erste Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Erste Group.
Diversification Opportunities for Atalaya Mining and Erste Group
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atalaya and Erste is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Erste Group Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erste Group Bank 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 Erste Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erste Group Bank has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Erste Group go up and down completely randomly.
Pair Corralation between Atalaya Mining and Erste Group
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 1.23 times less return on investment than Erste Group. In addition to that, Atalaya Mining is 1.67 times more volatile than Erste Group Bank. It trades about 0.12 of its total potential returns per unit of risk. Erste Group Bank is currently generating about 0.25 per unit of volatility. If you would invest 5,884 in Erste Group Bank on October 25, 2024 and sell it today you would earn a total of 306.00 from holding Erste Group Bank or generate 5.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atalaya Mining vs. Erste Group Bank
Performance |
| Timeline |
| Atalaya Mining |
| Erste Group Bank |
Atalaya Mining and Erste Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Erste Group
The main advantage of trading using opposite Atalaya Mining and Erste Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Erste Group 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 Erste Group will offset losses from the drop in Erste Group's long position.| Atalaya Mining vs. Monks Investment Trust | Atalaya Mining vs. Mineral Financial Investments | Atalaya Mining vs. Zoom Video Communications | Atalaya Mining vs. Herald Investment Trust |
| Erste Group vs. Manulife Financial Corp | Erste Group vs. Atalaya Mining | Erste Group vs. Bisichi Mining PLC | Erste Group vs. St Galler Kantonalbank |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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