Correlation Between Atlas Consolidated and NiHAO Mineral
Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and NiHAO Mineral 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 NiHAO Mineral 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 NiHAO Mineral Resources, you can compare the effects of market volatilities on Atlas Consolidated and NiHAO Mineral 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 NiHAO Mineral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and NiHAO Mineral.
Diversification Opportunities for Atlas Consolidated and NiHAO Mineral
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlas and NiHAO is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and NiHAO Mineral Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiHAO Mineral Resources 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 NiHAO Mineral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NiHAO Mineral Resources has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and NiHAO Mineral go up and down completely randomly.
Pair Corralation between Atlas Consolidated and NiHAO Mineral
Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to generate 0.3 times more return on investment than NiHAO Mineral. However, Atlas Consolidated Mining is 3.36 times less risky than NiHAO Mineral. It trades about -0.06 of its potential returns per unit of risk. NiHAO Mineral Resources is currently generating about -0.07 per unit of risk. If you would invest 444.00 in Atlas Consolidated Mining on September 20, 2024 and sell it today you would lose (32.00) from holding Atlas Consolidated Mining or give up 7.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 56.45% |
| Values | Daily Returns |
Atlas Consolidated Mining vs. NiHAO Mineral Resources
Performance |
| Timeline |
| Atlas Consolidated Mining |
| NiHAO Mineral Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atlas Consolidated and NiHAO Mineral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Consolidated and NiHAO Mineral
The main advantage of trading using opposite Atlas Consolidated and NiHAO Mineral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Consolidated position performs unexpectedly, NiHAO Mineral 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 NiHAO Mineral will offset losses from the drop in NiHAO Mineral's long position.| Atlas Consolidated vs. Atok Big Wedge | Atlas Consolidated vs. Philex Mining Corp | Atlas Consolidated vs. Lepanto Consolidated Mining |
| NiHAO Mineral vs. Metropolitan Bank Trust | NiHAO Mineral vs. BDO Unibank | NiHAO Mineral vs. Concepcion Industrial Corp | NiHAO Mineral 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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