Correlation Between Atrium Mortgage and Altagas
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Altagas 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 Altagas 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 Altagas Ltd Pref, you can compare the effects of market volatilities on Atrium Mortgage and Altagas 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 Altagas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Altagas.
Diversification Opportunities for Atrium Mortgage and Altagas
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atrium and Altagas is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Altagas Ltd Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altagas Pref 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 Altagas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altagas Pref has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Altagas go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Altagas
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 1.2 times more return on investment than Altagas. However, Atrium Mortgage is 1.2 times more volatile than Altagas Ltd Pref. It trades about 0.38 of its potential returns per unit of risk. Altagas Ltd Pref is currently generating about 0.35 per unit of risk. If you would invest 1,092 in Atrium Mortgage Investment on September 3, 2024 and sell it today you would earn a total of 44.00 from holding Atrium Mortgage Investment or generate 4.03% 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. Altagas Ltd Pref
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Altagas Pref |
Atrium Mortgage and Altagas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Altagas
The main advantage of trading using opposite Atrium Mortgage and Altagas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Altagas 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 Altagas will offset losses from the drop in Altagas' 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 |
| Altagas vs. Enbridge Pref 11 | Altagas vs. E Split Corp | Altagas vs. E Split Corp | Altagas vs. Sage Potash Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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