Correlation Between Atok Big and Philex Mining

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

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

Diversification Opportunities for Atok Big and Philex Mining

0.15

Correlation Coefficient

Atok Big  Philex Mining

Average diversification

The 3 months correlation between Atok and Philex is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Atok Big Wedge and Philex Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philex Mining Corp and Atok Big 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 Atok Big Wedge are associated (or correlated) with Philex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philex Mining Corp has no effect on the direction of Atok Big i.e., Atok Big and Philex Mining go up and down completely randomly.

Pair Corralation between Atok Big and Philex Mining

Assuming the 90 days trading horizon Atok Big Wedge is expected to under-perform the Philex Mining. In addition to that, Atok Big is 1.69 times more volatile than Philex Mining Corp. It trades about -0.09 of its total potential returns per unit of risk. Philex Mining Corp is currently generating about -0.07 per unit of volatility. If you would invest  700.00  in Philex Mining Corp on April 20, 2025 and sell it today you would lose (108.00) from holding Philex Mining Corp or give up 15.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	63.93%
Values	Daily Returns

Atok Big Wedge  vs.  Philex Mining Corp

Atok Big Wedge

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atok Big Wedge 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 basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Philex Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Philex 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 basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Atok Big and Philex Mining

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

The idea behind Atok Big Wedge and Philex Mining 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.