Correlation Between Federal Agricultural and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both Federal Agricultural 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 Federal Agricultural and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal Agricultural Mortgage and Atlanticus Holdings Corp, you can compare the effects of market volatilities on Federal Agricultural 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 Federal Agricultural with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Agricultural and Atlanticus Holdings.
Diversification Opportunities for Federal Agricultural and Atlanticus Holdings
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federal and Atlanticus is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Federal Agricultural Mortgage 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 Federal Agricultural 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 Federal Agricultural Mortgage 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 Federal Agricultural i.e., Federal Agricultural and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between Federal Agricultural and Atlanticus Holdings
Assuming the 90 days trading horizon Federal Agricultural Mortgage is expected to under-perform the Atlanticus Holdings. In addition to that, Federal Agricultural is 1.36 times more volatile than Atlanticus Holdings Corp. It trades about -0.27 of its total potential returns per unit of risk. Atlanticus Holdings Corp is currently generating about 0.32 per unit of volatility. If you would invest 2,266 in Atlanticus Holdings Corp on August 24, 2024 and sell it today you would earn a total of 123.00 from holding Atlanticus Holdings Corp or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Agricultural Mortgage vs. Atlanticus Holdings Corp
Performance |
| Timeline |
| Federal Agricultural |
| Atlanticus Holdings Corp |
Federal Agricultural and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Agricultural and Atlanticus Holdings
The main advantage of trading using opposite Federal Agricultural and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Agricultural 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.| Federal Agricultural vs. Capital One Financial | Federal Agricultural vs. Capital One Financial | Federal Agricultural vs. Capital One Financial | Federal Agricultural vs. Capital One Financial |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |