Correlation Between Philex Mining and ATN Holdings

Can any of the company-specific risk be diversified away by investing in both Philex Mining 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 Philex Mining and ATN Holdings 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 ATN Holdings, you can compare the effects of market volatilities on Philex Mining 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 Philex Mining with a short position of ATN Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and ATN Holdings.

Diversification Opportunities for Philex Mining and ATN Holdings

0.09

Correlation Coefficient

Philex Mining  ATN Holdings

Significant diversification

The 3 months correlation between Philex and ATN is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and ATN Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATN Holdings 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 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 Philex Mining i.e., Philex Mining and ATN Holdings go up and down completely randomly.

Pair Corralation between Philex Mining and ATN Holdings

Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the ATN Holdings. In addition to that, Philex Mining is 1.64 times more volatile than ATN Holdings. It trades about -0.08 of its total potential returns per unit of risk. ATN Holdings is currently generating about 0.03 per unit of volatility. If you would invest  51.00  in ATN Holdings on April 24, 2025 and sell it today you would earn a total of  1.00  from holding ATN Holdings or generate 1.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	90.0%
Values	Daily Returns

Philex Mining Corp  vs.  ATN Holdings

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.

ATN Holdings

Risk-Adjusted Performance

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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Philex Mining and ATN Holdings

The main advantage of trading using opposite Philex Mining and ATN Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining 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 Philex Mining Corp 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.