Correlation Between Atalaya Mining and Blackstone Loan

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

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

Diversification Opportunities for Atalaya Mining and Blackstone Loan

0.34

Correlation Coefficient

Atalaya Mining  Blackstone Loan

Weak diversification

The 3 months correlation between Atalaya and Blackstone is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing 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 Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Blackstone Loan go up and down completely randomly.

Pair Corralation between Atalaya Mining and Blackstone Loan

Assuming the 90 days trading horizon Atalaya Mining is expected to generate 2.37 times more return on investment than Blackstone Loan. However, Atalaya Mining is 2.37 times more volatile than Blackstone Loan Financing. It trades about 0.1 of its potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.05 per unit of risk. If you would invest  35,400  in Atalaya Mining on November 20, 2024 and sell it today you would earn a total of  4,000  from holding Atalaya Mining or generate 11.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	62.3%
Values	Daily Returns

Atalaya Mining  vs.  Blackstone Loan Financing

Atalaya Mining

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atalaya Mining are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Atalaya Mining may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Blackstone Loan Financing

Risk-Adjusted Performance

Insignificant

Over the last 90 days Blackstone Loan Financing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Blackstone Loan 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 Atalaya Mining and Blackstone Loan

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

The idea behind Atalaya Mining and Blackstone Loan Financing 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 Transaction History module to view history of all your transactions and understand their impact on performance.