Correlation Between Systemair and Atalaya Mining

Can any of the company-specific risk be diversified away by investing in both Systemair 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 Systemair and Atalaya Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Systemair AB and Atalaya Mining, you can compare the effects of market volatilities on Systemair 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 Systemair with a short position of Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Systemair and Atalaya Mining.

Diversification Opportunities for Systemair and Atalaya Mining

-0.42

Correlation Coefficient

Systemair  Atalaya Mining

Very good diversification

The 3 months correlation between Systemair and Atalaya is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Systemair AB and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining and Systemair 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 Systemair AB 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 Systemair i.e., Systemair and Atalaya Mining go up and down completely randomly.

Pair Corralation between Systemair and Atalaya Mining

Assuming the 90 days trading horizon Systemair AB is expected to under-perform the Atalaya Mining. But the stock apears to be less risky and, when comparing its historical volatility, Systemair AB is 1.51 times less risky than Atalaya Mining. The stock trades about -0.31 of its potential returns per unit of risk. The Atalaya Mining is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  35,000  in Atalaya Mining on October 11, 2024 and sell it today you would earn a total of  2,200  from holding Atalaya Mining or generate 6.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Systemair AB  vs.  Atalaya Mining

Systemair AB

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Systemair AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Systemair is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Atalaya Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atalaya Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Atalaya Mining is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Systemair and Atalaya Mining

The main advantage of trading using opposite Systemair and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Systemair 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.

The idea behind Systemair AB and Atalaya Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Bonds Directory module to find actively traded corporate debentures issued by US companies.