Correlation Between Atalaya Mining and Impax Asset

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

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

Diversification Opportunities for Atalaya Mining and Impax Asset

0.53

Correlation Coefficient

Atalaya Mining  Impax Asset

Very weak diversification

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

Pair Corralation between Atalaya Mining and Impax Asset

Assuming the 90 days trading horizon Atalaya Mining is expected to generate 0.84 times more return on investment than Impax Asset. However, Atalaya Mining is 1.19 times less risky than Impax Asset. It trades about 0.15 of its potential returns per unit of risk. Impax Asset Management is currently generating about 0.0 per unit of risk. If you would invest  35,050  in Atalaya Mining on March 24, 2025 and sell it today you would earn a total of  10,600  from holding Atalaya Mining or generate 30.24% 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.  Impax Asset Management

Atalaya Mining

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atalaya Mining are ranked lower than 11 (%) 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.

Impax Asset Management

Risk-Adjusted Performance

Very Weak

Over the last 90 days Impax Asset Management has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Impax Asset 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 Impax Asset

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

The idea behind Atalaya Mining and Impax Asset Management 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.