Correlation Between Atalaya Mining and Metalnrg PLC
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Metalnrg PLC 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 Metalnrg PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Metalnrg PLC, you can compare the effects of market volatilities on Atalaya Mining and Metalnrg PLC 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 Metalnrg PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Metalnrg PLC.
Diversification Opportunities for Atalaya Mining and Metalnrg PLC
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atalaya and Metalnrg is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Metalnrg PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalnrg PLC 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 Metalnrg PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalnrg PLC has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Metalnrg PLC go up and down completely randomly.
Pair Corralation between Atalaya Mining and Metalnrg PLC
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 49.62 times less return on investment than Metalnrg PLC. But when comparing it to its historical volatility, Atalaya Mining is 19.54 times less risky than Metalnrg PLC. It trades about 0.02 of its potential returns per unit of risk. Metalnrg PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 900.00 in Metalnrg PLC on September 23, 2024 and sell it today you would earn a total of 2,000 from holding Metalnrg PLC or generate 222.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Atalaya Mining vs. Metalnrg PLC
Performance |
| Timeline |
| Atalaya Mining |
| Metalnrg PLC |
Atalaya Mining and Metalnrg PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Metalnrg PLC
The main advantage of trading using opposite Atalaya Mining and Metalnrg PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Metalnrg PLC 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 Metalnrg PLC will offset losses from the drop in Metalnrg PLC's long position.| Atalaya Mining vs. Empire Metals Limited | Atalaya Mining vs. AMG Advanced Metallurgical | Atalaya Mining vs. Cornish Metals | Atalaya Mining vs. Jupiter Fund Management |
| Metalnrg PLC vs. Givaudan SA | Metalnrg PLC vs. Antofagasta PLC | Metalnrg PLC vs. Ferrexpo PLC | Metalnrg PLC vs. Atalaya Mining |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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