Correlation Between Atalaya Mining and Concurrent Technologies

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

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

Diversification Opportunities for Atalaya Mining and Concurrent Technologies

-0.53

Correlation Coefficient

Atalaya Mining  Concurrent Technologies

Excellent diversification

The 3 months correlation between Atalaya and Concurrent is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Concurrent Technologies Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concurrent Technologies 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 Concurrent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concurrent Technologies has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Concurrent Technologies go up and down completely randomly.

Pair Corralation between Atalaya Mining and Concurrent Technologies

Assuming the 90 days trading horizon Atalaya Mining is expected to under-perform the Concurrent Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Atalaya Mining is 1.64 times less risky than Concurrent Technologies. The stock trades about -0.02 of its potential returns per unit of risk. The Concurrent Technologies Plc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  11,700  in Concurrent Technologies Plc on October 22, 2024 and sell it today you would earn a total of  4,575  from holding Concurrent Technologies Plc or generate 39.1% return on investment over 90 days.

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

Atalaya Mining  vs.  Concurrent Technologies Plc

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.

Concurrent Technologies

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Concurrent Technologies Plc are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Concurrent Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atalaya Mining and Concurrent Technologies

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

The idea behind Atalaya Mining and Concurrent Technologies Plc 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.