Correlation Between Atlas Consolidated and Security Bank
Can any of the company-specific risk be diversified away by investing in both Atlas Consolidated and Security Bank 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 Security Bank 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 Security Bank Corp, you can compare the effects of market volatilities on Atlas Consolidated and Security Bank 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 Security Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Consolidated and Security Bank.
Diversification Opportunities for Atlas Consolidated and Security Bank
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Atlas and Security is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Consolidated Mining and Security Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security Bank Corp 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 Security Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security Bank Corp has no effect on the direction of Atlas Consolidated i.e., Atlas Consolidated and Security Bank go up and down completely randomly.
Pair Corralation between Atlas Consolidated and Security Bank
Assuming the 90 days trading horizon Atlas Consolidated is expected to generate 8.14 times less return on investment than Security Bank. In addition to that, Atlas Consolidated is 1.03 times more volatile than Security Bank Corp. It trades about 0.01 of its total potential returns per unit of risk. Security Bank Corp is currently generating about 0.11 per unit of volatility. If you would invest 6,305 in Security Bank Corp on April 22, 2025 and sell it today you would earn a total of 1,025 from holding Security Bank Corp or generate 16.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Atlas Consolidated Mining vs. Security Bank Corp
Performance |
Timeline |
Atlas Consolidated Mining |
Security Bank Corp |
Atlas Consolidated and Security Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atlas Consolidated and Security Bank
The main advantage of trading using opposite Atlas Consolidated and Security Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Consolidated position performs unexpectedly, Security Bank 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 Security Bank will offset losses from the drop in Security Bank's long position.Atlas Consolidated vs. East West Banking | Atlas Consolidated vs. Rizal Commercial Banking | Atlas Consolidated vs. COL Financial Group | Atlas Consolidated vs. Crown Asia Chemicals |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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