Correlation Between Atalaya Mining and Batm Advanced

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

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

Diversification Opportunities for Atalaya Mining and Batm Advanced

0.49

Correlation Coefficient

Atalaya Mining  Batm Advanced

Very weak diversification

The 3 months correlation between Atalaya and Batm is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Atalaya Mining and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Atalaya Mining i.e., Atalaya Mining and Batm Advanced go up and down completely randomly.

Pair Corralation between Atalaya Mining and Batm Advanced

Assuming the 90 days trading horizon Atalaya Mining is expected to generate 0.89 times more return on investment than Batm Advanced. However, Atalaya Mining is 1.13 times less risky than Batm Advanced. It trades about 0.17 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about 0.06 per unit of risk. If you would invest  37,913  in Atalaya Mining on April 24, 2025 and sell it today you would earn a total of  9,987  from holding Atalaya Mining or generate 26.34% 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.  Batm Advanced Communications

Atalaya Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atalaya Mining are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Atalaya Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Batm Advanced Commun

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Batm Advanced Communications are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Batm Advanced may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Atalaya Mining and Batm Advanced

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

The idea behind Atalaya Mining and Batm Advanced Communications 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.