Correlation Between Atok Big and Atlas Consolidated
Can any of the company-specific risk be diversified away by investing in both Atok Big and Atlas Consolidated 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 Atok Big and Atlas Consolidated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atok Big Wedge and Atlas Consolidated Mining, you can compare the effects of market volatilities on Atok Big and Atlas Consolidated 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 Atok Big with a short position of Atlas Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atok Big and Atlas Consolidated.
Diversification Opportunities for Atok Big and Atlas Consolidated
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Atok and Atlas is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Atok Big Wedge and Atlas Consolidated Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Consolidated Mining and Atok Big 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 Atok Big Wedge are associated (or correlated) with Atlas Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Consolidated Mining has no effect on the direction of Atok Big i.e., Atok Big and Atlas Consolidated go up and down completely randomly.
Pair Corralation between Atok Big and Atlas Consolidated
Assuming the 90 days trading horizon Atok Big Wedge is expected to generate 3.9 times more return on investment than Atlas Consolidated. However, Atok Big is 3.9 times more volatile than Atlas Consolidated Mining. It trades about 0.01 of its potential returns per unit of risk. Atlas Consolidated Mining is currently generating about -0.05 per unit of risk. If you would invest 414.00 in Atok Big Wedge on August 25, 2024 and sell it today you would lose (63.00) from holding Atok Big Wedge or give up 15.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 66.13% |
| Values | Daily Returns |
Atok Big Wedge vs. Atlas Consolidated Mining
Performance |
| Timeline |
| Atok Big Wedge |
| Atlas Consolidated Mining |
Atok Big and Atlas Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atok Big and Atlas Consolidated
The main advantage of trading using opposite Atok Big and Atlas Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atok Big position performs unexpectedly, Atlas Consolidated 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 Atlas Consolidated will offset losses from the drop in Atlas Consolidated's long position.| Atok Big vs. Top Frontier Investment | Atok Big vs. Semirara Mining Corp | Atok Big vs. Metropolitan Bank Trust | Atok Big vs. Transpacific Broadband Group |
| Atlas Consolidated vs. Atok Big Wedge | Atlas Consolidated vs. Philex Mining Corp | Atlas Consolidated vs. Lepanto Consolidated Mining | Atlas Consolidated vs. Apex Mining Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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