Correlation Between Atlas Corp and Angkor Resources
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Angkor Resources 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 Corp and Angkor Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Angkor Resources Corp, you can compare the effects of market volatilities on Atlas Corp and Angkor Resources 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 Corp with a short position of Angkor Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Angkor Resources.
Diversification Opportunities for Atlas Corp and Angkor Resources
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlas and Angkor is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Angkor Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angkor Resources Corp and Atlas Corp 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 Corp are associated (or correlated) with Angkor Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angkor Resources Corp has no effect on the direction of Atlas Corp i.e., Atlas Corp and Angkor Resources go up and down completely randomly.
Pair Corralation between Atlas Corp and Angkor Resources
Assuming the 90 days horizon Atlas Corp is expected to generate 40.27 times less return on investment than Angkor Resources. But when comparing it to its historical volatility, Atlas Corp is 23.07 times less risky than Angkor Resources. It trades about 0.05 of its potential returns per unit of risk. Angkor Resources Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7.39 in Angkor Resources Corp on November 27, 2024 and sell it today you would earn a total of 0.61 from holding Angkor Resources Corp or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Atlas Corp vs. Angkor Resources Corp
Performance |
| Timeline |
| Atlas Corp |
| Angkor Resources Corp |
Atlas Corp and Angkor Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Angkor Resources
The main advantage of trading using opposite Atlas Corp and Angkor Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Angkor Resources 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 Angkor Resources will offset losses from the drop in Angkor Resources' long position.| Atlas Corp vs. Harrow Health 8625 | Atlas Corp vs. Babcock Wilcox Enterprises, | Atlas Corp vs. B Riley Financial | Atlas Corp vs. Oxford Lane Capital |
| Angkor Resources vs. Argo Gold | Angkor Resources vs. Blue Star Gold | Angkor Resources vs. Advance Gold Corp | Angkor Resources vs. Advance United Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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