Correlation Between Atlas Consolidated and BDO Unibank
Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and BDO Unibank 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 BDO Unibank 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 BDO Unibank, you can compare the effects of market volatilities on Atlas Consolidated and BDO Unibank 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 BDO Unibank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and BDO Unibank.
Diversification Opportunities for Atlas Consolidated and BDO Unibank
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atlas and BDO is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and BDO Unibank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BDO Unibank 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 BDO Unibank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BDO Unibank has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and BDO Unibank go up and down completely randomly.
Pair Corralation between Atlas Consolidated and BDO Unibank
Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to generate 1.53 times more return on investment than BDO Unibank. However, Atlas Consolidated is 1.53 times more volatile than BDO Unibank. It trades about 0.01 of its potential returns per unit of risk. BDO Unibank is currently generating about -0.05 per unit of risk. If you would invest 452.00 in Atlas Consolidated Mining on April 20, 2025 and sell it today you would lose (2.00) from holding Atlas Consolidated Mining or give up 0.44% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Atlas Consolidated Mining vs. BDO Unibank
Performance |
Timeline |
Atlas Consolidated Mining |
BDO Unibank |
Atlas Consolidated and BDO Unibank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atlas Consolidated and BDO Unibank
The main advantage of trading using opposite Atlas Consolidated and BDO Unibank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Consolidated position performs unexpectedly, BDO Unibank 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 BDO Unibank will offset losses from the drop in BDO Unibank's long position.Atlas Consolidated vs. Apollo Global Capital | Atlas Consolidated vs. Atok Big Wedge | Atlas Consolidated vs. Philex Mining Corp | Atlas Consolidated vs. Lepanto Consolidated Mining |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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