Correlation Between Atalaya Mining and Oakley Capital
Can any of the company-specific risk be diversified away by investing in both Atalaya Mining and Oakley Capital 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 Oakley Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atalaya Mining and Oakley Capital Investments, you can compare the effects of market volatilities on Atalaya Mining and Oakley Capital 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 Oakley Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atalaya Mining and Oakley Capital.
Diversification Opportunities for Atalaya Mining and Oakley Capital
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atalaya and Oakley is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Oakley Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakley Capital Inves 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 Oakley Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakley Capital Inves has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Oakley Capital go up and down completely randomly.
Pair Corralation between Atalaya Mining and Oakley Capital
Assuming the 90 days trading horizon Atalaya Mining is expected to generate 2.31 times more return on investment than Oakley Capital. However, Atalaya Mining is 2.31 times more volatile than Oakley Capital Investments. It trades about 0.02 of its potential returns per unit of risk. Oakley Capital Investments is currently generating about 0.03 per unit of risk. If you would invest 33,548 in Atalaya Mining on September 12, 2024 and sell it today you would earn a total of 1,452 from holding Atalaya Mining or generate 4.33% 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. Oakley Capital Investments
Performance |
| Timeline |
| Atalaya Mining |
| Oakley Capital Inves |
Atalaya Mining and Oakley Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atalaya Mining and Oakley Capital
The main advantage of trading using opposite Atalaya Mining and Oakley Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Oakley Capital 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 Oakley Capital will offset losses from the drop in Oakley Capital's long position.| Atalaya Mining vs. Wheaton Precious Metals | Atalaya Mining vs. Silvercorp Metals | Atalaya Mining vs. GreenX Metals | Atalaya Mining vs. BW Offshore |
| Oakley Capital vs. Gaztransport et Technigaz | Oakley Capital vs. Griffin Mining | Oakley Capital vs. Atalaya Mining | Oakley Capital vs. GoldMining |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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