Correlation Between Atlas Consolidated and Megawide Construction
Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Megawide Construction 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 Megawide Construction 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 Megawide Construction Corp, you can compare the effects of market volatilities on Atlas Consolidated and Megawide Construction 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 Megawide Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Megawide Construction.
Diversification Opportunities for Atlas Consolidated and Megawide Construction
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlas and Megawide is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Megawide Construction Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megawide Construction 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 Megawide Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megawide Construction has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Megawide Construction go up and down completely randomly.
Pair Corralation between Atlas Consolidated and Megawide Construction
Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to generate 1.51 times more return on investment than Megawide Construction. However, Atlas Consolidated is 1.51 times more volatile than Megawide Construction Corp. It trades about 0.06 of its potential returns per unit of risk. Megawide Construction Corp is currently generating about 0.05 per unit of risk. If you would invest 411.00 in Atlas Consolidated Mining on October 20, 2024 and sell it today you would earn a total of 9.00 from holding Atlas Consolidated Mining or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 38.89% |
| Values | Daily Returns |
Atlas Consolidated Mining vs. Megawide Construction Corp
Performance |
| Timeline |
| Atlas Consolidated Mining |
| Megawide Construction |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Atlas Consolidated and Megawide Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Consolidated and Megawide Construction
The main advantage of trading using opposite Atlas Consolidated and Megawide Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Consolidated position performs unexpectedly, Megawide Construction 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 Megawide Construction will offset losses from the drop in Megawide Construction's long position.| Atlas Consolidated vs. Nickel Asia Corp | Atlas Consolidated vs. Philex Mining Corp | Atlas Consolidated vs. Lepanto Consolidated Mining | Atlas Consolidated vs. Lepanto Consolidated Mining |
| Megawide Construction vs. Atlas Consolidated Mining | Megawide Construction vs. Jollibee Foods Corp | Megawide Construction vs. Manila Mining Corp | Megawide Construction vs. Lepanto Consolidated Mining |
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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