Correlation Between Cirtek Holdings and Atlas Consolidated
Can any of the company-specific risk be diversified away by investing in both Cirtek Holdings and Atlas Consolidated 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 Cirtek Holdings and Atlas Consolidated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cirtek Holdings Philippines and Atlas Consolidated Mining, you can compare the effects of market volatilities on Cirtek Holdings and Atlas Consolidated 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 Cirtek Holdings with a short position of Atlas Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirtek Holdings and Atlas Consolidated.
Diversification Opportunities for Cirtek Holdings and Atlas Consolidated
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cirtek and Atlas is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Cirtek Holdings Philippines and Atlas Consolidated Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Consolidated Mining and Cirtek Holdings 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 Cirtek Holdings Philippines are associated (or correlated) with Atlas Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Consolidated Mining has no effect on the direction of Cirtek Holdings i.e., Cirtek Holdings and Atlas Consolidated go up and down completely randomly.
Pair Corralation between Cirtek Holdings and Atlas Consolidated
Assuming the 90 days trading horizon Cirtek Holdings Philippines is expected to under-perform the Atlas Consolidated. In addition to that, Cirtek Holdings is 3.77 times more volatile than Atlas Consolidated Mining. It trades about -0.79 of its total potential returns per unit of risk. Atlas Consolidated Mining is currently generating about 0.04 per unit of volatility. If you would invest 415.00 in Atlas Consolidated Mining on September 25, 2024 and sell it today you would earn a total of 5.00 from holding Atlas Consolidated Mining or generate 1.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 20.0% |
Values | Daily Returns |
Cirtek Holdings Philippines vs. Atlas Consolidated Mining
Performance |
Timeline |
Cirtek Holdings Phil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atlas Consolidated Mining |
Cirtek Holdings and Atlas Consolidated Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cirtek Holdings and Atlas Consolidated
The main advantage of trading using opposite Cirtek Holdings and Atlas Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirtek Holdings position performs unexpectedly, Atlas Consolidated 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 Atlas Consolidated will offset losses from the drop in Atlas Consolidated's long position.Cirtek Holdings vs. Atlas Consolidated Mining | Cirtek Holdings vs. SM Investments Corp | Cirtek Holdings vs. Asia United Bank | Cirtek Holdings vs. Security Bank Corp |
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Check out your portfolio center.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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