Correlation Between Atlantic Energy and Church Crawford
Can any of the company-specific risk be diversified away by investing in both Atlantic Energy and Church Crawford 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 Atlantic Energy and Church Crawford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic Energy Solutions and Church Crawford, you can compare the effects of market volatilities on Atlantic Energy and Church Crawford 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 Atlantic Energy with a short position of Church Crawford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic Energy and Church Crawford.
Diversification Opportunities for Atlantic Energy and Church Crawford
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlantic and Church is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Energy Solutions and Church Crawford in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Crawford and Atlantic Energy 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 Atlantic Energy Solutions are associated (or correlated) with Church Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Church Crawford has no effect on the direction of Atlantic Energy i.e., Atlantic Energy and Church Crawford go up and down completely randomly.
Pair Corralation between Atlantic Energy and Church Crawford
Given the investment horizon of 90 days Atlantic Energy Solutions is expected to generate 2.73 times more return on investment than Church Crawford. However, Atlantic Energy is 2.73 times more volatile than Church Crawford. It trades about 0.04 of its potential returns per unit of risk. Church Crawford is currently generating about -0.33 per unit of risk. If you would invest 0.85 in Atlantic Energy Solutions on October 25, 2024 and sell it today you would lose (0.09) from holding Atlantic Energy Solutions or give up 10.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Atlantic Energy Solutions vs. Church Crawford
Performance |
| Timeline |
| Atlantic Energy Solutions |
| Church Crawford |
Atlantic Energy and Church Crawford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic Energy and Church Crawford
The main advantage of trading using opposite Atlantic Energy and Church Crawford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Energy position performs unexpectedly, Church Crawford 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 Church Crawford will offset losses from the drop in Church Crawford's long position.| Atlantic Energy vs. Simulated Environmen | Atlantic Energy vs. Mundus Group | Atlantic Energy vs. Xtra Energy Corp |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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