Correlation Between Atalaya Mining and Thyssenkrupp
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Thyssenkrupp 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 Thyssenkrupp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Thyssenkrupp AG ON, you can compare the effects of market volatilities on Atalaya Mining and Thyssenkrupp 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 Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Thyssenkrupp.
Diversification Opportunities for Atalaya Mining and Thyssenkrupp
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atalaya and Thyssenkrupp is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Thyssenkrupp AG ON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thyssenkrupp AG ON 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 Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thyssenkrupp AG ON has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Thyssenkrupp go up and down completely randomly.
Pair Corralation between Atalaya Mining and Thyssenkrupp
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 1.47 times less return on investment than Thyssenkrupp. But when comparing it to its historical volatility, Atalaya Mining is 1.17 times less risky than Thyssenkrupp. It trades about 0.02 of its potential returns per unit of risk. Thyssenkrupp AG ON is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 622.00 in Thyssenkrupp AG ON on December 4, 2024 and sell it today you would earn a total of 172.00 from holding Thyssenkrupp AG ON or generate 27.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Atalaya Mining vs. Thyssenkrupp AG ON
Performance |
| Timeline |
| Atalaya Mining |
| Thyssenkrupp AG ON |
Atalaya Mining and Thyssenkrupp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Thyssenkrupp
The main advantage of trading using opposite Atalaya Mining and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.| Atalaya Mining vs. Foresight Environmental Infrastructure | Atalaya Mining vs. Broadridge Financial Solutions | Atalaya Mining vs. Eastman Chemical Co | Atalaya Mining vs. Broadcom |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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