Correlation Between Manila Bulletin and Atlas Consolidated

Can any of the company-specific risk be diversified away by investing in both Manila Bulletin and Atlas Consolidated 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 Manila Bulletin and Atlas Consolidated into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Manila Bulletin Publishing and Atlas Consolidated Mining, you can compare the effects of market volatilities on Manila Bulletin and Atlas Consolidated 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 Manila Bulletin with a short position of Atlas Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manila Bulletin and Atlas Consolidated.

Diversification Opportunities for Manila Bulletin and Atlas Consolidated

0.16

Correlation Coefficient

Manila Bulletin  Atlas Consolidated

Average diversification

The 3 months correlation between Manila and Atlas is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Manila Bulletin Publishing and Atlas Consolidated Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Consolidated Mining and Manila Bulletin 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 Manila Bulletin Publishing are associated (or correlated) with Atlas Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Consolidated Mining has no effect on the direction of Manila Bulletin i.e., Manila Bulletin and Atlas Consolidated go up and down completely randomly.

Pair Corralation between Manila Bulletin and Atlas Consolidated

Assuming the 90 days trading horizon Manila Bulletin Publishing is expected to generate 2.01 times more return on investment than Atlas Consolidated. However, Manila Bulletin is 2.01 times more volatile than Atlas Consolidated Mining. It trades about 0.07 of its potential returns per unit of risk. Atlas Consolidated Mining is currently generating about 0.01 per unit of risk. If you would invest  18.00  in Manila Bulletin Publishing on April 21, 2025 and sell it today you would earn a total of  1.00  from holding Manila Bulletin Publishing or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	41.94%
Values	Daily Returns

Manila Bulletin Publishing  vs.  Atlas Consolidated Mining

Manila Bulletin Publ

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Manila Bulletin Publishing are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Manila Bulletin exhibited solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Manila Bulletin and Atlas Consolidated

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

The idea behind Manila Bulletin Publishing and Atlas Consolidated Mining 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.