Correlation Between GreenX Metals and Atalaya Mining

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Can any of the company-specific risk be diversified away by investing in both GreenX Metals and Atalaya Mining 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 GreenX Metals and Atalaya Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GreenX Metals and Atalaya Mining, you can compare the effects of market volatilities on GreenX Metals and Atalaya Mining 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 GreenX Metals with a short position of Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenX Metals and Atalaya Mining.

Diversification Opportunities for GreenX Metals and Atalaya Mining

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between GreenX and Atalaya is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GreenX Metals and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining and GreenX Metals 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 GreenX Metals are associated (or correlated) with Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of GreenX Metals i.e., GreenX Metals and Atalaya Mining go up and down completely randomly.

Pair Corralation between GreenX Metals and Atalaya Mining

Assuming the 90 days trading horizon GreenX Metals is expected to generate 2.24 times more return on investment than Atalaya Mining. However, GreenX Metals is 2.24 times more volatile than Atalaya Mining. It trades about 0.02 of its potential returns per unit of risk. Atalaya Mining is currently generating about 0.02 per unit of risk. If you would invest  3,450  in GreenX Metals on September 13, 2024 and sell it today you would earn a total of  0.00  from holding GreenX Metals or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

GreenX Metals  vs.  Atalaya Mining

 Performance 
       Timeline  
GreenX Metals 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in GreenX Metals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, GreenX Metals may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Atalaya Mining 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
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.

GreenX Metals and Atalaya Mining Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GreenX Metals and Atalaya Mining

The main advantage of trading using opposite GreenX Metals and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenX Metals position performs unexpectedly, Atalaya Mining 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 Atalaya Mining will offset losses from the drop in Atalaya Mining's long position.
The idea behind GreenX Metals and Atalaya Mining 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.
Check out your portfolio center.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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