Correlation Between Philex Mining and Atok Big

Can any of the company-specific risk be diversified away by investing in both Philex Mining and Atok Big 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 Philex Mining and Atok Big into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Philex Mining Corp and Atok Big Wedge, you can compare the effects of market volatilities on Philex Mining and Atok Big 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 Philex Mining with a short position of Atok Big. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and Atok Big.

Diversification Opportunities for Philex Mining and Atok Big

0.13

Correlation Coefficient

Philex Mining  Atok Big

Average diversification

The 3 months correlation between Philex and Atok is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Atok Big Wedge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atok Big Wedge and Philex Mining 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 Philex Mining Corp are associated (or correlated) with Atok Big. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atok Big Wedge has no effect on the direction of Philex Mining i.e., Philex Mining and Atok Big go up and down completely randomly.

Pair Corralation between Philex Mining and Atok Big

Assuming the 90 days trading horizon Philex Mining Corp is expected to generate 0.59 times more return on investment than Atok Big. However, Philex Mining Corp is 1.69 times less risky than Atok Big. It trades about -0.07 of its potential returns per unit of risk. Atok Big Wedge is currently generating about -0.09 per unit of risk. If you would invest  700.00  in Philex Mining Corp on April 20, 2025 and sell it today you would lose (108.00) from holding Philex Mining Corp or give up 15.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	63.93%
Values	Daily Returns

Philex Mining Corp  vs.  Atok Big Wedge

Philex Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Philex Mining Corp 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 rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Atok Big Wedge

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atok Big Wedge 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 rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Philex Mining and Atok Big

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

The idea behind Philex Mining Corp and Atok Big Wedge 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.