Correlation Between Atlas Consolidated and Globe Telecom
Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Globe Telecom 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 Globe Telecom 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 Globe Telecom, you can compare the effects of market volatilities on Atlas Consolidated and Globe Telecom 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 Globe Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Globe Telecom.
Diversification Opportunities for Atlas Consolidated and Globe Telecom
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlas and Globe is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Globe Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Telecom 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 Globe Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Telecom has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Globe Telecom go up and down completely randomly.
Pair Corralation between Atlas Consolidated and Globe Telecom
Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to generate 0.95 times more return on investment than Globe Telecom. However, Atlas Consolidated Mining is 1.05 times less risky than Globe Telecom. It trades about -0.01 of its potential returns per unit of risk. Globe Telecom is currently generating about -0.03 per unit of risk. If you would invest 419.00 in Atlas Consolidated Mining on August 31, 2024 and sell it today you would lose (8.00) from holding Atlas Consolidated Mining or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Consolidated Mining vs. Globe Telecom
Performance |
| Timeline |
| Atlas Consolidated Mining |
| Globe Telecom |
Atlas Consolidated and Globe Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Consolidated and Globe Telecom
The main advantage of trading using opposite Atlas Consolidated and Globe Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Consolidated position performs unexpectedly, Globe Telecom 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 Globe Telecom will offset losses from the drop in Globe Telecom's long position.| Atlas Consolidated vs. Union Bank of | Atlas Consolidated vs. Bank of the | Atlas Consolidated vs. Pacificonline Systems | Atlas Consolidated vs. Top Frontier Investment |
| Globe Telecom vs. Prime Media Holdings | Globe Telecom vs. Concepcion Industrial Corp | Globe Telecom vs. STI Education Systems | Globe Telecom 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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