Correlation Between Atlas Consolidated and Robinsons Retail
Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Robinsons Retail 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 Robinsons Retail 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 Robinsons Retail Holdings, you can compare the effects of market volatilities on Atlas Consolidated and Robinsons Retail 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 Robinsons Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Robinsons Retail.
Diversification Opportunities for Atlas Consolidated and Robinsons Retail
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlas and Robinsons is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Robinsons Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Retail Holdings 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 Robinsons Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Retail Holdings has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Robinsons Retail go up and down completely randomly.
Pair Corralation between Atlas Consolidated and Robinsons Retail
Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to under-perform the Robinsons Retail. In addition to that, Atlas Consolidated is 1.29 times more volatile than Robinsons Retail Holdings. It trades about -0.36 of its total potential returns per unit of risk. Robinsons Retail Holdings is currently generating about -0.25 per unit of volatility. If you would invest 3,960 in Robinsons Retail Holdings on August 29, 2024 and sell it today you would lose (320.00) from holding Robinsons Retail Holdings or give up 8.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Consolidated Mining vs. Robinsons Retail Holdings
Performance |
| Timeline |
| Atlas Consolidated Mining |
| Robinsons Retail Holdings |
Atlas Consolidated and Robinsons Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Consolidated and Robinsons Retail
The main advantage of trading using opposite Atlas Consolidated and Robinsons Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Consolidated position performs unexpectedly, Robinsons Retail 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 Robinsons Retail will offset losses from the drop in Robinsons Retail's 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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