Correlation Between Atlas Consolidated and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Jollibee Foods 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 Jollibee Foods 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 Jollibee Foods Corp, you can compare the effects of market volatilities on Atlas Consolidated and Jollibee Foods 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 Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Jollibee Foods.
Diversification Opportunities for Atlas Consolidated and Jollibee Foods
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlas and Jollibee is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Jollibee Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jollibee Foods Corp 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 Jollibee Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jollibee Foods Corp has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Jollibee Foods go up and down completely randomly.
Pair Corralation between Atlas Consolidated and Jollibee Foods
Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to under-perform the Jollibee Foods. In addition to that, Atlas Consolidated is 1.01 times more volatile than Jollibee Foods Corp. It trades about -0.36 of its total potential returns per unit of risk. Jollibee Foods Corp is currently generating about 0.05 per unit of volatility. If you would invest 26,718 in Jollibee Foods Corp on August 29, 2024 and sell it today you would earn a total of 442.00 from holding Jollibee Foods Corp or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Consolidated Mining vs. Jollibee Foods Corp
Performance |
| Timeline |
| Atlas Consolidated Mining |
| Jollibee Foods Corp |
Atlas Consolidated and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Consolidated and Jollibee Foods
The main advantage of trading using opposite Atlas Consolidated and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Consolidated position performs unexpectedly, Jollibee Foods 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 Jollibee Foods will offset losses from the drop in Jollibee Foods' long position.| Atlas Consolidated vs. SM Investments Corp | Atlas Consolidated vs. Lepanto Consolidated Mining | Atlas Consolidated vs. Integrated Micro Electronics | Atlas Consolidated vs. Top Frontier Investment |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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