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

-0.03

Correlation Coefficient

Cirtek Holdings  Atlas Consolidated

Good diversification

The 3 months correlation between Cirtek and Atlas is -0.03. 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 2.02 times more volatile than Atlas Consolidated Mining. It trades about -0.2 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 28, 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 Against
Strength	Insignificant
Accuracy	78.95%
Values	Daily Returns

Cirtek Holdings Philippines  vs.  Atlas Consolidated Mining

Cirtek Holdings Phil

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cirtek Holdings Philippines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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 latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

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.

The idea behind Cirtek Holdings Philippines and Atlas Consolidated Mining 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.