Correlation Between Atok Big and Concepcion Industrial

Can any of the company-specific risk be diversified away by investing in both Atok Big and Concepcion Industrial 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 Atok Big and Concepcion Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atok Big Wedge and Concepcion Industrial Corp, you can compare the effects of market volatilities on Atok Big and Concepcion Industrial 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 Atok Big with a short position of Concepcion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atok Big and Concepcion Industrial.

Diversification Opportunities for Atok Big and Concepcion Industrial

0.28

Correlation Coefficient

Atok Big  Concepcion Industrial

Modest diversification

The 3 months correlation between Atok and Concepcion is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Atok Big Wedge and Concepcion Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concepcion Industrial and Atok Big 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 Atok Big Wedge are associated (or correlated) with Concepcion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concepcion Industrial has no effect on the direction of Atok Big i.e., Atok Big and Concepcion Industrial go up and down completely randomly.

Pair Corralation between Atok Big and Concepcion Industrial

Assuming the 90 days trading horizon Atok Big Wedge is expected to generate 2.46 times more return on investment than Concepcion Industrial. However, Atok Big is 2.46 times more volatile than Concepcion Industrial Corp. It trades about 0.04 of its potential returns per unit of risk. Concepcion Industrial Corp is currently generating about 0.07 per unit of risk. If you would invest  490.00  in Atok Big Wedge on December 23, 2024 and sell it today you would earn a total of  20.00  from holding Atok Big Wedge or generate 4.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.49%
Values	Daily Returns

Atok Big Wedge  vs.  Concepcion Industrial Corp

Atok Big Wedge

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atok Big Wedge are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Atok Big may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Concepcion Industrial

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Concepcion Industrial Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Concepcion Industrial may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Atok Big and Concepcion Industrial

The main advantage of trading using opposite Atok Big and Concepcion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atok Big position performs unexpectedly, Concepcion Industrial 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 Concepcion Industrial will offset losses from the drop in Concepcion Industrial's long position.

The idea behind Atok Big Wedge and Concepcion Industrial Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.