Correlation Between Centaur Media and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Centaur Media and Atalaya 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 Centaur Media and Atalaya Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centaur Media and Atalaya Mining, you can compare the effects of market volatilities on Centaur Media and Atalaya 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 Centaur Media with a short position of Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centaur Media and Atalaya Mining.
Diversification Opportunities for Centaur Media and Atalaya Mining
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Centaur and Atalaya is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Centaur Media and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining and Centaur Media 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 Centaur Media are associated (or correlated) with Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of Centaur Media i.e., Centaur Media and Atalaya Mining go up and down completely randomly.
Pair Corralation between Centaur Media and Atalaya Mining
Assuming the 90 days trading horizon Centaur Media is expected to under-perform the Atalaya Mining. In addition to that, Centaur Media is 1.16 times more volatile than Atalaya Mining. It trades about -0.15 of its total potential returns per unit of risk. Atalaya Mining is currently generating about -0.05 per unit of volatility. If you would invest 39,550 in Atalaya Mining on September 2, 2024 and sell it today you would lose (3,950) from holding Atalaya Mining or give up 9.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Centaur Media vs. Atalaya Mining
Performance |
| Timeline |
| Centaur Media |
| Atalaya Mining |
Centaur Media and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centaur Media and Atalaya Mining
The main advantage of trading using opposite Centaur Media and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centaur Media position performs unexpectedly, Atalaya 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 Atalaya Mining will offset losses from the drop in Atalaya Mining's long position.| Centaur Media vs. FC Investment Trust | Centaur Media vs. MoneysupermarketCom Group PLC | Centaur Media vs. Molson Coors Beverage | Centaur Media vs. CAP LEASE AVIATION |
| Atalaya Mining vs. Scandic Hotels Group | Atalaya Mining vs. Young Cos Brewery | Atalaya Mining vs. Fair Oaks Income | Atalaya Mining vs. Park Hotels Resorts |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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