Correlation Between High-yield Municipal and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both High-yield Municipal and Atlanticus 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 High-yield Municipal and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Yield Municipal Fund and Atlanticus Holdings Corp, you can compare the effects of market volatilities on High-yield Municipal and Atlanticus 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 High-yield Municipal with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of High-yield Municipal and Atlanticus Holdings.
Diversification Opportunities for High-yield Municipal and Atlanticus Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between High-yield and Atlanticus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding High Yield Municipal Fund and Atlanticus Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings Corp and High-yield Municipal 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 High Yield Municipal Fund are associated (or correlated) with Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings Corp has no effect on the direction of High-yield Municipal i.e., High-yield Municipal and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between High-yield Municipal and Atlanticus Holdings
Assuming the 90 days horizon High-yield Municipal is expected to generate 4.03 times less return on investment than Atlanticus Holdings. But when comparing it to its historical volatility, High Yield Municipal Fund is 1.88 times less risky than Atlanticus Holdings. It trades about 0.16 of its potential returns per unit of risk. Atlanticus Holdings Corp is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,281 in Atlanticus Holdings Corp on August 30, 2024 and sell it today you would earn a total of 127.00 from holding Atlanticus Holdings Corp or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
High Yield Municipal Fund vs. Atlanticus Holdings Corp
Performance |
| Timeline |
| High Yield Municipal |
| Atlanticus Holdings Corp |
High-yield Municipal and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High-yield Municipal and Atlanticus Holdings
The main advantage of trading using opposite High-yield Municipal and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High-yield Municipal position performs unexpectedly, Atlanticus 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 Atlanticus Holdings will offset losses from the drop in Atlanticus Holdings' long position.| High-yield Municipal vs. High Yield Fund Investor | High-yield Municipal vs. Intermediate Term Tax Free Bond | High-yield Municipal vs. California High Yield Municipal | High-yield Municipal vs. T Rowe Price |
| Atlanticus Holdings vs. Capital One Financial | Atlanticus Holdings vs. Capital One Financial | Atlanticus Holdings vs. Citizens Financial Group | Atlanticus Holdings vs. Wells Fargo |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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