Correlation Between ATRIUM MORTGAGE and ELLINGTON FINL
Can any of the company-specific risk be diversified away by investing in both ATRIUM MORTGAGE and ELLINGTON FINL 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 ATRIUM MORTGAGE and ELLINGTON FINL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRIUM MORTGAGE INVESTM and ELLINGTON FINL INC, you can compare the effects of market volatilities on ATRIUM MORTGAGE and ELLINGTON FINL 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 ATRIUM MORTGAGE with a short position of ELLINGTON FINL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRIUM MORTGAGE and ELLINGTON FINL.
Diversification Opportunities for ATRIUM MORTGAGE and ELLINGTON FINL
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between ATRIUM and ELLINGTON is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding ATRIUM MORTGAGE INVESTM and ELLINGTON FINL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELLINGTON FINL INC and ATRIUM MORTGAGE 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 ATRIUM MORTGAGE INVESTM are associated (or correlated) with ELLINGTON FINL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELLINGTON FINL INC has no effect on the direction of ATRIUM MORTGAGE i.e., ATRIUM MORTGAGE and ELLINGTON FINL go up and down completely randomly.
Pair Corralation between ATRIUM MORTGAGE and ELLINGTON FINL
Assuming the 90 days horizon ATRIUM MORTGAGE INVESTM is expected to under-perform the ELLINGTON FINL. In addition to that, ATRIUM MORTGAGE is 1.48 times more volatile than ELLINGTON FINL INC. It trades about -0.03 of its total potential returns per unit of risk. ELLINGTON FINL INC is currently generating about 0.36 per unit of volatility. If you would invest 1,147 in ELLINGTON FINL INC on October 20, 2024 and sell it today you would earn a total of 73.00 from holding ELLINGTON FINL INC or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRIUM MORTGAGE INVESTM vs. ELLINGTON FINL INC
Performance |
| Timeline |
| ATRIUM MORTGAGE INVESTM |
| ELLINGTON FINL INC |
ATRIUM MORTGAGE and ELLINGTON FINL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRIUM MORTGAGE and ELLINGTON FINL
The main advantage of trading using opposite ATRIUM MORTGAGE and ELLINGTON FINL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRIUM MORTGAGE position performs unexpectedly, ELLINGTON FINL 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 ELLINGTON FINL will offset losses from the drop in ELLINGTON FINL's long position.| ATRIUM MORTGAGE vs. Mr Cooper Group | ATRIUM MORTGAGE vs. PennyMac Financial Services | ATRIUM MORTGAGE vs. OSB GROUP PLC | ATRIUM MORTGAGE vs. FIRST NATIONAL FIN |
| ELLINGTON FINL vs. Mr Cooper Group | ELLINGTON FINL vs. PennyMac Financial Services | ELLINGTON FINL vs. OSB GROUP PLC | ELLINGTON FINL vs. FIRST NATIONAL FIN |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |