Correlation Between Atlas Consolidated and Golden Haven
Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Golden Haven 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 Golden Haven 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 Golden Haven Memorial, you can compare the effects of market volatilities on Atlas Consolidated and Golden Haven 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 Golden Haven. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Golden Haven.
Diversification Opportunities for Atlas Consolidated and Golden Haven
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlas and Golden is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Golden Haven Memorial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Haven Memorial 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 Golden Haven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Haven Memorial has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Golden Haven go up and down completely randomly.
Pair Corralation between Atlas Consolidated and Golden Haven
Assuming the 90 days trading horizon Atlas Consolidated is expected to generate 7.1 times less return on investment than Golden Haven. In addition to that, Atlas Consolidated is 1.15 times more volatile than Golden Haven Memorial. It trades about 0.02 of its total potential returns per unit of risk. Golden Haven Memorial is currently generating about 0.2 per unit of volatility. If you would invest 63,000 in Golden Haven Memorial on August 24, 2024 and sell it today you would earn a total of 147,200 from holding Golden Haven Memorial or generate 233.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 67.8% |
| Values | Daily Returns |
Atlas Consolidated Mining vs. Golden Haven Memorial
Performance |
| Timeline |
| Atlas Consolidated Mining |
| Golden Haven Memorial |
Atlas Consolidated and Golden Haven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Consolidated and Golden Haven
The main advantage of trading using opposite Atlas Consolidated and Golden Haven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Consolidated position performs unexpectedly, Golden Haven 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 Golden Haven will offset losses from the drop in Golden Haven's long position.| Atlas Consolidated vs. Prime Media Holdings | Atlas Consolidated vs. Alliance Select Foods | Atlas Consolidated vs. COL Financial Group | Atlas Consolidated vs. Union Bank of |
| Golden Haven vs. Philippine Savings Bank | Golden Haven vs. Atlas Consolidated Mining | Golden Haven vs. Allhome Corp | Golden Haven vs. Jollibee Foods 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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