Correlation Between ACRES Commercial and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both ACRES Commercial 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 ACRES Commercial and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACRES Commercial Realty and Atlanticus Holdings Corp, you can compare the effects of market volatilities on ACRES Commercial 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 ACRES Commercial with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACRES Commercial and Atlanticus Holdings.
Diversification Opportunities for ACRES Commercial and Atlanticus Holdings
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACRES and Atlanticus is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ACRES Commercial Realty 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 ACRES Commercial 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 ACRES Commercial Realty 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 ACRES Commercial i.e., ACRES Commercial and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between ACRES Commercial and Atlanticus Holdings
Assuming the 90 days trading horizon ACRES Commercial Realty is expected to generate 0.37 times more return on investment than Atlanticus Holdings. However, ACRES Commercial Realty is 2.71 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 0.06 per unit of risk. If you would invest 2,236 in ACRES Commercial Realty on August 27, 2024 and sell it today you would earn a total of 272.00 from holding ACRES Commercial Realty or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACRES Commercial Realty vs. Atlanticus Holdings Corp
Performance |
| Timeline |
| ACRES Commercial Realty |
| Atlanticus Holdings Corp |
ACRES Commercial and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACRES Commercial and Atlanticus Holdings
The main advantage of trading using opposite ACRES Commercial and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACRES Commercial 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.| ACRES Commercial vs. Annaly Capital Management | ACRES Commercial vs. AGNC Investment Corp | ACRES Commercial vs. Invesco Mortgage Capital | ACRES Commercial vs. Invesco Mortgage Capital |
| Atlanticus Holdings vs. Babcock Wilcox Enterprises | Atlanticus Holdings vs. XOMA Corporation | Atlanticus Holdings vs. Brighthouse Financial | Atlanticus Holdings vs. Presidio Property Trust |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |