Correlation Between Atok Big and Manila Mining
Can any of the company-specific risk be diversified away by investing in both Atok Big and Manila 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 Atok Big and Manila Mining 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 Manila Mining Corp, you can compare the effects of market volatilities on Atok Big and Manila 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 Atok Big with a short position of Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atok Big and Manila Mining.
Diversification Opportunities for Atok Big and Manila Mining
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atok and Manila is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Atok Big Wedge and Manila Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manila Mining Corp 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 Manila Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manila Mining Corp has no effect on the direction of Atok Big i.e., Atok Big and Manila Mining go up and down completely randomly.
Pair Corralation between Atok Big and Manila Mining
Assuming the 90 days trading horizon Atok Big Wedge is expected to generate 1.91 times more return on investment than Manila Mining. However, Atok Big is 1.91 times more volatile than Manila Mining Corp. It trades about 0.02 of its potential returns per unit of risk. Manila Mining Corp is currently generating about -0.11 per unit of risk. If you would invest 578.00 in Atok Big Wedge on September 12, 2024 and sell it today you would lose (176.00) from holding Atok Big Wedge or give up 30.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 68.78% |
| Values | Daily Returns |
Atok Big Wedge vs. Manila Mining Corp
Performance |
| Timeline |
| Atok Big Wedge |
| Manila Mining Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atok Big and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atok Big and Manila Mining
The main advantage of trading using opposite Atok Big and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atok Big position performs unexpectedly, Manila 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 Manila Mining will offset losses from the drop in Manila Mining's long position.| Atok Big vs. House of Investments | Atok Big vs. Top Frontier Investment | Atok Big vs. Century Pacific Food | Atok Big vs. STI Education Systems |
| Manila Mining vs. Nickel Asia Corp | Manila Mining vs. Atok Big Wedge | Manila Mining vs. Philex Mining Corp | Manila Mining vs. Atlas Consolidated Mining |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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