Correlation Between Atalaya Mining and JLEN Environmental
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and JLEN Environmental 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 JLEN Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and JLEN Environmental Assets, you can compare the effects of market volatilities on Atalaya Mining and JLEN Environmental 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 JLEN Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and JLEN Environmental.
Diversification Opportunities for Atalaya Mining and JLEN Environmental
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atalaya and JLEN is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and JLEN Environmental Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLEN Environmental Assets 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 JLEN Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLEN Environmental Assets has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and JLEN Environmental go up and down completely randomly.
Pair Corralation between Atalaya Mining and JLEN Environmental
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 1.3 times more return on investment than JLEN Environmental. However, Atalaya Mining is 1.3 times more volatile than JLEN Environmental Assets. It trades about -0.06 of its potential returns per unit of risk. JLEN Environmental Assets is currently generating about -0.31 per unit of risk. If you would invest 37,000 in Atalaya Mining on November 8, 2024 and sell it today you would lose (1,200) from holding Atalaya Mining or give up 3.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Atalaya Mining vs. JLEN Environmental Assets
Performance |
| Timeline |
| Atalaya Mining |
| JLEN Environmental Assets |
Atalaya Mining and JLEN Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and JLEN Environmental
The main advantage of trading using opposite Atalaya Mining and JLEN Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, JLEN Environmental 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 JLEN Environmental will offset losses from the drop in JLEN Environmental's long position.| Atalaya Mining vs. GreenX Metals | Atalaya Mining vs. Polar Capital Technology | Atalaya Mining vs. Metals Exploration Plc | Atalaya Mining vs. Bytes Technology |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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