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
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrium and First is -0.49. 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 generate 0.26 times more return on investment than First Majestic. However, Atrium Mortgage Investment is 3.89 times less risky than First Majestic. It trades about 0.12 of its potential returns per unit of risk. First Majestic Silver is currently generating about -0.34 per unit of risk. If you would invest 1,123 in Atrium Mortgage Investment on August 31, 2024 and sell it today you would earn a total of 19.00 from holding Atrium Mortgage Investment or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| 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. Nova Leap Health | First Majestic vs. Leveljump Healthcare Corp | First Majestic vs. Perseus Mining | First Majestic vs. CVS HEALTH CDR |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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