Correlation Between Atalaya Mining and Cornish Metals
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Cornish Metals 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 Cornish Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Cornish Metals, you can compare the effects of market volatilities on Atalaya Mining and Cornish Metals 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 Cornish Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Cornish Metals.
Diversification Opportunities for Atalaya Mining and Cornish Metals
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atalaya and Cornish is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Cornish Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornish Metals 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 Cornish Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornish Metals has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Cornish Metals go up and down completely randomly.
Pair Corralation between Atalaya Mining and Cornish Metals
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 14.82 times less return on investment than Cornish Metals. But when comparing it to its historical volatility, Atalaya Mining is 1.55 times less risky than Cornish Metals. It trades about 0.01 of its potential returns per unit of risk. Cornish Metals is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 550.00 in Cornish Metals on November 3, 2024 and sell it today you would earn a total of 350.00 from holding Cornish Metals or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atalaya Mining vs. Cornish Metals
Performance |
| Timeline |
| Atalaya Mining |
| Cornish Metals |
Atalaya Mining and Cornish Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Cornish Metals
The main advantage of trading using opposite Atalaya Mining and Cornish Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Cornish Metals 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 Cornish Metals will offset losses from the drop in Cornish Metals' 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 |
| Cornish Metals vs. European Metals Holdings | Cornish Metals vs. Central Asia Metals | Cornish Metals vs. Golden Metal Resources | Cornish Metals vs. Naked Wines plc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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