Correlation Between Atlas Consolidated and Asia United
Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Asia United 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 Atlas Consolidated and Asia United into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Consolidated Mining and Asia United Bank, you can compare the effects of market volatilities on Atlas Consolidated and Asia United 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 Atlas Consolidated with a short position of Asia United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Asia United.
Diversification Opportunities for Atlas Consolidated and Asia United
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlas and Asia is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Asia United Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia United Bank and Atlas Consolidated 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 Atlas Consolidated Mining are associated (or correlated) with Asia United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia United Bank has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Asia United go up and down completely randomly.
Pair Corralation between Atlas Consolidated and Asia United
Assuming the 90 days trading horizon Atlas Consolidated is expected to generate 4.49 times less return on investment than Asia United. In addition to that, Atlas Consolidated is 1.38 times more volatile than Asia United Bank. It trades about 0.02 of its total potential returns per unit of risk. Asia United Bank is currently generating about 0.14 per unit of volatility. If you would invest 2,400 in Asia United Bank on August 29, 2024 and sell it today you would earn a total of 3,900 from holding Asia United Bank or generate 162.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.69% |
| Values | Daily Returns |
Atlas Consolidated Mining vs. Asia United Bank
Performance |
| Timeline |
| Atlas Consolidated Mining |
| Asia United Bank |
Atlas Consolidated and Asia United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Consolidated and Asia United
The main advantage of trading using opposite Atlas Consolidated and Asia United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Consolidated position performs unexpectedly, Asia United 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 Asia United will offset losses from the drop in Asia United's long position.| Atlas Consolidated vs. Transpacific Broadband Group | Atlas Consolidated vs. Philippine Savings Bank | Atlas Consolidated vs. Semirara Mining Corp | Atlas Consolidated vs. Bank of the |
| Asia United vs. Apex Mining Co | Asia United vs. Jollibee Foods Corp | Asia United vs. Allhome Corp | Asia United vs. STI Education Systems |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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