Correlation Between Atrium Mortgage and First Majestic
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and First Majestic 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 First Majestic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atrium Mortgage Investment and First Majestic Silver, you can compare the effects of market volatilities on Atrium Mortgage and First Majestic 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 First Majestic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and First Majestic.
Diversification Opportunities for Atrium Mortgage and First Majestic
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atrium and First is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and First Majestic Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Majestic Silver 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 Investment are associated (or correlated) with First Majestic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Majestic Silver has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and First Majestic go up and down completely randomly.
Pair Corralation between Atrium Mortgage and First Majestic
Assuming the 90 days horizon Atrium Mortgage Investment is expected to under-perform the First Majestic. But the stock apears to be less risky and, when comparing its historical volatility, Atrium Mortgage Investment is 3.39 times less risky than First Majestic. The stock trades about -0.07 of its potential returns per unit of risk. The First Majestic Silver is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 831.00 in First Majestic Silver on November 7, 2024 and sell it today you would earn a total of 51.00 from holding First Majestic Silver or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. First Majestic Silver
Performance |
| Timeline |
| Atrium Mortgage Inve |
| First Majestic Silver |
Atrium Mortgage and First Majestic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and First Majestic
The main advantage of trading using opposite Atrium Mortgage and First Majestic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, First Majestic 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 First Majestic will offset losses from the drop in First Majestic's long position.| Atrium Mortgage vs. Timbercreek Financial Corp | Atrium Mortgage vs. Firm Capital Mortgage | Atrium Mortgage vs. MCAN Mortgage | Atrium Mortgage vs. First National Financial |
| First Majestic vs. Computer Modelling Group | First Majestic vs. Canaf Investments | First Majestic vs. Highwood Asset Management | First Majestic vs. Westshore Terminals Investment |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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