Correlation Between Atalaya Mining and Markel Corp

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

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

Diversification Opportunities for Atalaya Mining and Markel Corp

0.56

Correlation Coefficient

Atalaya Mining  Markel Corp

Very weak diversification

The 3 months correlation between Atalaya and Markel is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Markel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel Corp 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 Markel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel Corp has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Markel Corp go up and down completely randomly.

Pair Corralation between Atalaya Mining and Markel Corp

Assuming the 90 days trading horizon Atalaya Mining is expected to generate 1.32 times less return on investment than Markel Corp. In addition to that, Atalaya Mining is 1.32 times more volatile than Markel Corp. It trades about 0.04 of its total potential returns per unit of risk. Markel Corp is currently generating about 0.06 per unit of volatility. If you would invest  173,363  in Markel Corp on December 23, 2024 and sell it today you would earn a total of  10,228  from holding Markel Corp or generate 5.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Atalaya Mining  vs.  Markel Corp

Atalaya Mining

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atalaya Mining are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Atalaya Mining is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Markel Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Markel Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Markel Corp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Atalaya Mining and Markel Corp

The main advantage of trading using opposite Atalaya Mining and Markel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atalaya Mining position performs unexpectedly, Markel Corp 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 Markel Corp will offset losses from the drop in Markel Corp's long position.

The idea behind Atalaya Mining and Markel Corp 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.