Correlation Between Atlas Consolidated and Security Bank

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

Diversification Opportunities for Atlas Consolidated and Security Bank

-0.45

Correlation Coefficient

Atlas Consolidated  Security Bank

Very good diversification

The 3 months correlation between Atlas and Security is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Security Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security Bank 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 Security Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security Bank Corp has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Security Bank go up and down completely randomly.

Pair Corralation between Atlas Consolidated and Security Bank

Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to generate 1.46 times more return on investment than Security Bank. However, Atlas Consolidated is 1.46 times more volatile than Security Bank Corp. It trades about 0.1 of its potential returns per unit of risk. Security Bank Corp is currently generating about -0.15 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	100.0%
Values	Daily Returns

Atlas Consolidated Mining  vs.  Security Bank Corp

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.

Security Bank Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Security Bank Corp 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 Security Bank

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

The idea behind Atlas Consolidated Mining and Security Bank 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.