Correlation Between Atalaya Mining and Amaroq Minerals

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

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

Diversification Opportunities for Atalaya Mining and Amaroq Minerals

-0.15

Correlation Coefficient

Atalaya Mining  Amaroq Minerals

Good diversification

The 3 months correlation between Atalaya and Amaroq is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Amaroq Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amaroq Minerals 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 Amaroq Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amaroq Minerals has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Amaroq Minerals go up and down completely randomly.

Pair Corralation between Atalaya Mining and Amaroq Minerals

Assuming the 90 days trading horizon Atalaya Mining is expected to under-perform the Amaroq Minerals. But the stock apears to be less risky and, when comparing its historical volatility, Atalaya Mining is 1.39 times less risky than Amaroq Minerals. The stock trades about -0.04 of its potential returns per unit of risk. The Amaroq Minerals is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  6,100  in Amaroq Minerals on August 30, 2024 and sell it today you would earn a total of  4,115  from holding Amaroq Minerals or generate 67.46% return on investment over 90 days.

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

Atalaya Mining  vs.  Amaroq Minerals

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 latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Amaroq Minerals

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Amaroq Minerals are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Amaroq Minerals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atalaya Mining and Amaroq Minerals

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

The idea behind Atalaya Mining and Amaroq Minerals 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..