Correlation Between Atalaya Mining and Griffin Mining

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

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

Diversification Opportunities for Atalaya Mining and Griffin Mining

0.52

Correlation Coefficient

Atalaya Mining  Griffin Mining

Very weak diversification

The 3 months correlation between Atalaya and Griffin is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Griffin Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffin Mining 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 Griffin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffin Mining has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Griffin Mining go up and down completely randomly.

Pair Corralation between Atalaya Mining and Griffin Mining

Assuming the 90 days trading horizon Atalaya Mining is expected to under-perform the Griffin Mining. But the stock apears to be less risky and, when comparing its historical volatility, Atalaya Mining is 1.03 times less risky than Griffin Mining. The stock trades about 0.0 of its potential returns per unit of risk. The Griffin Mining is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  14,400  in Griffin Mining on September 4, 2024 and sell it today you would earn a total of  600.00  from holding Griffin Mining or generate 4.17% return on investment over 90 days.

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

Atalaya Mining  vs.  Griffin Mining

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.

Griffin Mining

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Griffin Mining are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Griffin Mining is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Atalaya Mining and Griffin Mining

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

The idea behind Atalaya Mining and Griffin 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.