Correlation Between Atlas Consolidated and Alliance Select

Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Alliance Select 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 Alliance Select 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 Alliance Select Foods, you can compare the effects of market volatilities on Atlas Consolidated and Alliance Select 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 Alliance Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Alliance Select.

Diversification Opportunities for Atlas Consolidated and Alliance Select

-0.71

Correlation Coefficient

Atlas Consolidated  Alliance Select

Pay attention - limited upside

The 3 months correlation between Atlas and Alliance is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Alliance Select Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Select Foods 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 Alliance Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Select Foods has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Alliance Select go up and down completely randomly.

Pair Corralation between Atlas Consolidated and Alliance Select

Assuming the 90 days trading horizon Atlas Consolidated Mining is expected to generate 0.69 times more return on investment than Alliance Select. However, Atlas Consolidated Mining is 1.44 times less risky than Alliance Select. It trades about 0.01 of its potential returns per unit of risk. Alliance Select Foods is currently generating about -0.07 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	Weak
Accuracy	55.74%
Values	Daily Returns

Atlas Consolidated Mining  vs.  Alliance Select Foods

Atlas Consolidated Mining

Risk-Adjusted Performance

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 rather sound basic indicators, Atlas Consolidated is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Alliance Select Foods

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alliance Select Foods 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 comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Atlas Consolidated and Alliance Select

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

The idea behind Atlas Consolidated Mining and Alliance Select Foods 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.