Correlation Between Atok Big and Philex Mining
Can any of the company-specific risk be diversified away by investing in both Atok Big and Philex 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 Philex 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 Philex Mining Corp, you can compare the effects of market volatilities on Atok Big and Philex 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 Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atok Big and Philex Mining.
Diversification Opportunities for Atok Big and Philex Mining
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Atok and Philex is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Atok Big Wedge and Philex Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philex 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 Philex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philex Mining Corp has no effect on the direction of Atok Big i.e., Atok Big and Philex Mining go up and down completely randomly.
Pair Corralation between Atok Big and Philex Mining
Assuming the 90 days trading horizon Atok Big Wedge is expected to under-perform the Philex Mining. In addition to that, Atok Big is 1.62 times more volatile than Philex Mining Corp. It trades about -0.63 of its total potential returns per unit of risk. Philex Mining Corp is currently generating about -0.37 per unit of volatility. If you would invest 332.00 in Philex Mining Corp on August 28, 2024 and sell it today you would lose (50.00) from holding Philex Mining Corp or give up 15.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 55.0% |
| Values | Daily Returns |
Atok Big Wedge vs. Philex Mining Corp
Performance |
| Timeline |
| Atok Big Wedge |
| Philex Mining Corp |
Atok Big and Philex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atok Big and Philex Mining
The main advantage of trading using opposite Atok Big and Philex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atok Big position performs unexpectedly, Philex 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 Philex Mining will offset losses from the drop in Philex Mining's long position.| Atok Big vs. COL Financial Group | Atok Big vs. Union Bank of | Atok Big vs. Bank of the | Atok Big vs. Asia United Bank |
| Philex Mining vs. Metropolitan Bank Trust | Philex Mining vs. Century Pacific Food | Philex Mining vs. Cebu Air Preferred | Philex Mining vs. Semirara Mining Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |