Correlation Between Atlas Corp and Robex Resources
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Robex 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 Robex 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 Robex Resources, you can compare the effects of market volatilities on Atlas Corp and Robex 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 Robex Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Robex Resources.
Diversification Opportunities for Atlas Corp and Robex Resources
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atlas and Robex is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Robex Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robex Resources 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 Robex Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robex Resources has no effect on the direction of Atlas Corp i.e., Atlas Corp and Robex Resources go up and down completely randomly.
Pair Corralation between Atlas Corp and Robex Resources
Assuming the 90 days horizon Atlas Corp is expected to generate 0.17 times more return on investment than Robex Resources. However, Atlas Corp is 5.88 times less risky than Robex Resources. It trades about -0.04 of its potential returns per unit of risk. Robex Resources is currently generating about -0.25 per unit of risk. If you would invest 2,517 in Atlas Corp on September 1, 2024 and sell it today you would lose (9.00) from holding Atlas Corp or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Atlas Corp vs. Robex Resources
Performance |
| Timeline |
| Atlas Corp |
| Robex Resources |
Atlas Corp and Robex Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Robex Resources
The main advantage of trading using opposite Atlas Corp and Robex Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Robex 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 Robex Resources will offset losses from the drop in Robex 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 |
| Robex Resources vs. South32 Limited | Robex Resources vs. NioCorp Developments Ltd | Robex Resources vs. HUMANA INC | Robex Resources vs. SCOR PK |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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