Correlation Between Compass Group and Atalaya Mining

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

Diversification Opportunities for Compass Group and Atalaya Mining

-0.78
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Compass and Atalaya is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Compass Group PLC and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining and Compass Group 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 Compass Group PLC 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 Compass Group i.e., Compass Group and Atalaya Mining go up and down completely randomly.

Pair Corralation between Compass Group and Atalaya Mining

Assuming the 90 days trading horizon Compass Group PLC is expected to under-perform the Atalaya Mining. But the stock apears to be less risky and, when comparing its historical volatility, Compass Group PLC is 2.45 times less risky than Atalaya Mining. The stock trades about -0.14 of its potential returns per unit of risk. The Atalaya Mining is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  65,600  in Atalaya Mining on October 10, 2025 and sell it today you would earn a total of  22,200  from holding Atalaya Mining or generate 33.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Compass Group PLC  vs.  Atalaya Mining

 Performance 
       Timeline  
Compass Group PLC 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Compass Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
Atalaya Mining 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Atalaya Mining are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Atalaya Mining unveiled solid returns over the last few months and may actually be approaching a breakup point.

Compass Group and Atalaya Mining Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Compass Group and Atalaya Mining

The main advantage of trading using opposite Compass Group and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compass Group 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 Compass Group PLC 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.
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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