Correlation Between Integrated Micro and Atlas Consolidated
Can any of the company-specific risk be diversified away by investing in both Integrated Micro and Atlas Consolidated 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 Integrated Micro and Atlas Consolidated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Micro Electronics and Atlas Consolidated Mining, you can compare the effects of market volatilities on Integrated Micro and Atlas Consolidated 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 Integrated Micro with a short position of Atlas Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Micro and Atlas Consolidated.
Diversification Opportunities for Integrated Micro and Atlas Consolidated
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Integrated and Atlas is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Micro Electronics and Atlas Consolidated Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Consolidated Mining and Integrated Micro 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 Integrated Micro Electronics are associated (or correlated) with Atlas Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Consolidated Mining has no effect on the direction of Integrated Micro i.e., Integrated Micro and Atlas Consolidated go up and down completely randomly.
Pair Corralation between Integrated Micro and Atlas Consolidated
Assuming the 90 days trading horizon Integrated Micro Electronics is expected to generate 1.17 times more return on investment than Atlas Consolidated. However, Integrated Micro is 1.17 times more volatile than Atlas Consolidated Mining. It trades about -0.13 of its potential returns per unit of risk. Atlas Consolidated Mining is currently generating about -0.24 per unit of risk. If you would invest 178.00 in Integrated Micro Electronics on August 25, 2024 and sell it today you would lose (13.00) from holding Integrated Micro Electronics or give up 7.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Micro Electronics vs. Atlas Consolidated Mining
Performance |
| Timeline |
| Integrated Micro Ele |
| Atlas Consolidated Mining |
Integrated Micro and Atlas Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Micro and Atlas Consolidated
The main advantage of trading using opposite Integrated Micro and Atlas Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Micro position performs unexpectedly, Atlas Consolidated 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 Atlas Consolidated will offset losses from the drop in Atlas Consolidated's long position.| Integrated Micro vs. Atlas Consolidated Mining | Integrated Micro vs. STI Education Systems | Integrated Micro vs. Converge Information Communications | Integrated Micro vs. Pacificonline Systems |
| Atlas Consolidated vs. Prime Media Holdings | Atlas Consolidated vs. Alliance Select Foods | Atlas Consolidated vs. COL Financial Group | Atlas Consolidated vs. Union Bank of |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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