Correlation Between Atalaya Mining and Caledonia Mining
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Caledonia Mining 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 Caledonia Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Caledonia Mining, you can compare the effects of market volatilities on Atalaya Mining and Caledonia Mining 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 Caledonia Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Caledonia Mining.
Diversification Opportunities for Atalaya Mining and Caledonia Mining
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atalaya and Caledonia is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Caledonia Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caledonia Mining 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 Caledonia Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caledonia Mining has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Caledonia Mining go up and down completely randomly.
Pair Corralation between Atalaya Mining and Caledonia Mining
Assuming the 90 days trading horizon Atalaya Mining is expected to under-perform the Caledonia Mining. In addition to that, Atalaya Mining is 1.57 times more volatile than Caledonia Mining. It trades about -0.14 of its total potential returns per unit of risk. Caledonia Mining is currently generating about -0.03 per unit of volatility. If you would invest 78,000 in Caledonia Mining on November 3, 2024 and sell it today you would lose (750.00) from holding Caledonia Mining or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atalaya Mining vs. Caledonia Mining
Performance |
| Timeline |
| Atalaya Mining |
| Caledonia Mining |
Atalaya Mining and Caledonia Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Caledonia Mining
The main advantage of trading using opposite Atalaya Mining and Caledonia Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Caledonia Mining 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 Caledonia Mining will offset losses from the drop in Caledonia Mining's long position.| Atalaya Mining vs. Lundin Mining Corp | Atalaya Mining vs. Blackrock World Mining | Atalaya Mining vs. Host Hotels Resorts | Atalaya Mining vs. Playtech Plc |
| Caledonia Mining vs. AMG Advanced Metallurgical | Caledonia Mining vs. First Class Metals | Caledonia Mining vs. Silvercorp Metals | Caledonia Mining vs. Science in Sport |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| CEOs Directory Screen CEOs from public companies around the world |