Correlation Between Benguet Corp and ATN Holdings

Can any of the company-specific risk be diversified away by investing in both Benguet Corp and ATN Holdings 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 Benguet Corp and ATN Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Benguet Corp A and ATN Holdings, you can compare the effects of market volatilities on Benguet Corp and ATN Holdings 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 Benguet Corp with a short position of ATN Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benguet Corp and ATN Holdings.

Diversification Opportunities for Benguet Corp and ATN Holdings

-0.23

Correlation Coefficient

Benguet Corp  ATN Holdings

Very good diversification

The 3 months correlation between Benguet and ATN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Benguet Corp A and ATN Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN Holdings and Benguet Corp 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 Benguet Corp A are associated (or correlated) with ATN Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATN Holdings has no effect on the direction of Benguet Corp i.e., Benguet Corp and ATN Holdings go up and down completely randomly.

Pair Corralation between Benguet Corp and ATN Holdings

Assuming the 90 days trading horizon Benguet Corp A is expected to generate 0.87 times more return on investment than ATN Holdings. However, Benguet Corp A is 1.15 times less risky than ATN Holdings. It trades about 0.05 of its potential returns per unit of risk. ATN Holdings is currently generating about 0.03 per unit of risk. If you would invest  422.00  in Benguet Corp A on April 22, 2025 and sell it today you would earn a total of  14.00  from holding Benguet Corp A or generate 3.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.45%
Values	Daily Returns

Benguet Corp A  vs.  ATN Holdings

Benguet Corp A

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Benguet Corp A are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Benguet Corp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

ATN Holdings

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ATN Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, ATN Holdings is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Benguet Corp and ATN Holdings

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

The idea behind Benguet Corp A and ATN Holdings 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.