Correlation Between Atalaya Mining and Integrated Diagnostics

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

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

Diversification Opportunities for Atalaya Mining and Integrated Diagnostics

0.32

Correlation Coefficient

Atalaya Mining  Integrated Diagnostics

Weak diversification

The 3 months correlation between Atalaya and Integrated is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Integrated Diagnostics Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Diagnostics 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 Integrated Diagnostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Diagnostics has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Integrated Diagnostics go up and down completely randomly.

Pair Corralation between Atalaya Mining and Integrated Diagnostics

Assuming the 90 days trading horizon Atalaya Mining is expected to generate 1.64 times less return on investment than Integrated Diagnostics. But when comparing it to its historical volatility, Atalaya Mining is 1.55 times less risky than Integrated Diagnostics. It trades about 0.05 of its potential returns per unit of risk. Integrated Diagnostics Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  35.00  in Integrated Diagnostics Holdings on October 14, 2024 and sell it today you would earn a total of  12.00  from holding Integrated Diagnostics Holdings or generate 34.29% return on investment over 90 days.

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

Atalaya Mining  vs.  Integrated Diagnostics Holding

Atalaya Mining

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atalaya Mining are ranked lower than 1 (%) 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 newest stock price uproar, may contribute to short-horizon losses for the private investors.

Integrated Diagnostics

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Diagnostics Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Integrated Diagnostics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atalaya Mining and Integrated Diagnostics

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

The idea behind Atalaya Mining and Integrated Diagnostics Holdings 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.