Correlation Between ViaSat and Compania Minera

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

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

Diversification Opportunities for ViaSat and Compania Minera

0.69

Correlation Coefficient

ViaSat  Compania Minera

Poor diversification

The 3 months correlation between ViaSat and Compania is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ViaSat Inc and Compania Minera Atacocha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Minera Atacocha and ViaSat 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 ViaSat Inc are associated (or correlated) with Compania Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Minera Atacocha has no effect on the direction of ViaSat i.e., ViaSat and Compania Minera go up and down completely randomly.

Pair Corralation between ViaSat and Compania Minera

Given the investment horizon of 90 days ViaSat Inc is expected to generate 1.51 times more return on investment than Compania Minera. However, ViaSat is 1.51 times more volatile than Compania Minera Atacocha. It trades about 0.25 of its potential returns per unit of risk. Compania Minera Atacocha is currently generating about 0.32 per unit of risk. If you would invest  1,460  in ViaSat Inc on July 22, 2025 and sell it today you would earn a total of  2,109  from holding ViaSat Inc or generate 144.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	92.19%
Values	Daily Returns

ViaSat Inc  vs.  Compania Minera Atacocha

ViaSat Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ViaSat Inc are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, ViaSat unveiled solid returns over the last few months and may actually be approaching a breakup point.

Compania Minera Atacocha

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Compania Minera Atacocha are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, Compania Minera exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ViaSat and Compania Minera

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

The idea behind ViaSat Inc and Compania Minera Atacocha 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.