Correlation Between Atlas Consolidated and Filinvest REIT

Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Filinvest REIT 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 Consolidated and Filinvest REIT into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atlas Consolidated Mining and Filinvest REIT Corp, you can compare the effects of market volatilities on Atlas Consolidated and Filinvest REIT 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 Consolidated with a short position of Filinvest REIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Filinvest REIT.

Diversification Opportunities for Atlas Consolidated and Filinvest REIT

0.27

Correlation Coefficient

Atlas Consolidated  Filinvest REIT

Modest diversification

The 3 months correlation between Atlas and Filinvest is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Filinvest REIT Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filinvest REIT Corp and Atlas Consolidated 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 Consolidated Mining are associated (or correlated) with Filinvest REIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filinvest REIT Corp has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Filinvest REIT go up and down completely randomly.

Pair Corralation between Atlas Consolidated and Filinvest REIT

Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to generate 1.44 times more return on investment than Filinvest REIT. However, Atlas Consolidated is 1.44 times more volatile than Filinvest REIT Corp. It trades about 0.0 of its potential returns per unit of risk. Filinvest REIT Corp is currently generating about -0.06 per unit of risk. If you would invest  450.00  in Atlas Consolidated Mining on October 10, 2024 and sell it today you would lose (40.00) from holding Atlas Consolidated Mining or give up 8.89% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	97.91%
Values	Daily Returns

Atlas Consolidated Mining  vs.  Filinvest REIT Corp

Atlas Consolidated Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atlas Consolidated Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Filinvest REIT Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Filinvest REIT Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable essential indicators, Filinvest REIT is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Atlas Consolidated and Filinvest REIT

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

The idea behind Atlas Consolidated Mining and Filinvest REIT 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.