Correlation Between Manila Mining and Atok Big

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

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

Diversification Opportunities for Manila Mining and Atok Big

-0.69

Correlation Coefficient

Manila Mining  Atok Big

Excellent diversification

The 3 months correlation between Manila and Atok is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Manila Mining Corp and Atok Big Wedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atok Big Wedge and Manila Mining 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 Manila Mining Corp are associated (or correlated) with Atok Big. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atok Big Wedge has no effect on the direction of Manila Mining i.e., Manila Mining and Atok Big go up and down completely randomly.

Pair Corralation between Manila Mining and Atok Big

Assuming the 90 days trading horizon Manila Mining is expected to generate 1.38 times less return on investment than Atok Big. In addition to that, Manila Mining is 1.54 times more volatile than Atok Big Wedge. It trades about 0.17 of its total potential returns per unit of risk. Atok Big Wedge is currently generating about 0.36 per unit of volatility. If you would invest  469.00  in Atok Big Wedge on October 13, 2024 and sell it today you would earn a total of  130.00  from holding Atok Big Wedge or generate 27.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	41.18%
Values	Daily Returns

Manila Mining Corp  vs.  Atok Big Wedge

Manila Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Manila Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental 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.

Atok Big Wedge

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atok Big Wedge are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Atok Big exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Manila Mining and Atok Big

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

The idea behind Manila Mining Corp and Atok Big Wedge 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.