Correlation Between Atlas Consolidated and Prime Media

Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Prime Media 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 Prime Media 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 Prime Media Holdings, you can compare the effects of market volatilities on Atlas Consolidated and Prime Media 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 Prime Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Prime Media.

Diversification Opportunities for Atlas Consolidated and Prime Media

-0.47

Correlation Coefficient

Atlas Consolidated  Prime Media

Very good diversification

The 3 months correlation between Atlas and Prime is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Prime Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Media Holdings 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 Prime Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Media Holdings has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Prime Media go up and down completely randomly.

Pair Corralation between Atlas Consolidated and Prime Media

Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to generate 0.66 times more return on investment than Prime Media. However, Atlas Consolidated Mining is 1.51 times less risky than Prime Media. It trades about 0.1 of its potential returns per unit of risk. Prime Media Holdings is currently generating about -0.07 per unit of risk. If you would invest  405.00  in Atlas Consolidated Mining on December 30, 2024 and sell it today you would earn a total of  70.00  from holding Atlas Consolidated Mining or generate 17.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.16%
Values	Daily Returns

Atlas Consolidated Mining  vs.  Prime Media Holdings

Atlas Consolidated Mining

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atlas Consolidated Mining are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Atlas Consolidated exhibited solid returns over the last few months and may actually be approaching a breakup point.

Prime Media Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Prime Media Holdings 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 comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Atlas Consolidated and Prime Media

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

The idea behind Atlas Consolidated Mining and Prime Media Holdings 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.