Correlation Between Atok Big and Dizon Copper

Can any of the company-specific risk be diversified away by investing in both Atok Big and Dizon Copper 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 Dizon Copper 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 Dizon Copper Silver, you can compare the effects of market volatilities on Atok Big and Dizon Copper 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 Dizon Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atok Big and Dizon Copper.

Diversification Opportunities for Atok Big and Dizon Copper

-0.15

Correlation Coefficient

Atok Big  Dizon Copper

Good diversification

The 3 months correlation between Atok and Dizon is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Atok Big Wedge and Dizon Copper Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dizon Copper Silver 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 Dizon Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dizon Copper Silver has no effect on the direction of Atok Big i.e., Atok Big and Dizon Copper go up and down completely randomly.

Pair Corralation between Atok Big and Dizon Copper

Assuming the 90 days trading horizon Atok Big Wedge is expected to generate 1.05 times more return on investment than Dizon Copper. However, Atok Big is 1.05 times more volatile than Dizon Copper Silver. It trades about 0.03 of its potential returns per unit of risk. Dizon Copper Silver is currently generating about 0.0 per unit of risk. If you would invest  664.00  in Atok Big Wedge on December 4, 2024 and sell it today you would lose (134.00) from holding Atok Big Wedge or give up 20.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	45.4%
Values	Daily Returns

Atok Big Wedge  vs.  Dizon Copper Silver

Atok Big Wedge

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atok Big Wedge are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Atok Big exhibited solid returns over the last few months and may actually be approaching a breakup point.

Dizon Copper Silver

Risk-Adjusted Performance

Insignificant

Over the last 90 days Dizon Copper Silver has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather unsteady technical and fundamental indicators, Dizon Copper exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atok Big and Dizon Copper

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

The idea behind Atok Big Wedge and Dizon Copper Silver 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.