Correlation Between Manila Mining and Atok Big
Can any of the company-specific risk be diversified away by investing in both Manila Mining and Atok Big 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 Manila Mining and Atok Big into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manila Mining Corp and Atok Big Wedge, you can compare the effects of market volatilities on Manila Mining and Atok Big 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 Manila Mining with a short position of Atok Big. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manila Mining and Atok Big.
Diversification Opportunities for Manila Mining and Atok Big
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manila and Atok is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Manila Mining Corp and Atok Big Wedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atok Big Wedge and Manila Mining 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 Manila Mining Corp are associated (or correlated) with Atok Big. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atok Big Wedge has no effect on the direction of Manila Mining i.e., Manila Mining and Atok Big go up and down completely randomly.
Pair Corralation between Manila Mining and Atok Big
Assuming the 90 days trading horizon Manila Mining Corp is expected to under-perform the Atok Big. But the stock apears to be less risky and, when comparing its historical volatility, Manila Mining Corp is 1.7 times less risky than Atok Big. The stock trades about -0.11 of its potential returns per unit of risk. The Atok Big Wedge is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 750.00 in Atok Big Wedge on September 3, 2024 and sell it today you would lose (372.00) from holding Atok Big Wedge or give up 49.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 57.62% |
| Values | Daily Returns |
Manila Mining Corp vs. Atok Big Wedge
Performance |
| Timeline |
| Manila Mining Corp |
| Atok Big Wedge |
Manila Mining and Atok Big Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manila Mining and Atok Big
The main advantage of trading using opposite Manila Mining and Atok Big positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manila Mining position performs unexpectedly, Atok Big 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 Atok Big will offset losses from the drop in Atok Big's long position.| Manila Mining vs. Nickel Asia Corp | Manila Mining vs. Apollo Global Capital | Manila Mining vs. Philex Mining Corp | Manila Mining vs. Atlas Consolidated Mining |
| Atok Big vs. Nickel Asia Corp | Atok Big vs. Apollo Global Capital | Atok Big vs. Philex Mining Corp | Atok Big vs. Atlas 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |