Correlation Between Atrium Mortgage and Ascot Resources
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Ascot Resources 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 Ascot Resources 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 Ascot Resources, you can compare the effects of market volatilities on Atrium Mortgage and Ascot Resources 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 Ascot Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Ascot Resources.
Diversification Opportunities for Atrium Mortgage and Ascot Resources
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atrium and Ascot is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Ascot Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascot Resources 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 Ascot Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascot Resources has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Ascot Resources go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Ascot Resources
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.06 times more return on investment than Ascot Resources. However, Atrium Mortgage Investment is 17.01 times less risky than Ascot Resources. It trades about 0.38 of its potential returns per unit of risk. Ascot Resources is currently generating about -0.1 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. Ascot Resources
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Ascot Resources |
Atrium Mortgage and Ascot Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Ascot Resources
The main advantage of trading using opposite Atrium Mortgage and Ascot Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Ascot Resources 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 Ascot Resources will offset losses from the drop in Ascot Resources' 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 |
| Ascot Resources vs. High Liner Foods | Ascot Resources vs. QC Copper and | Ascot Resources vs. Slate Grocery REIT | Ascot Resources vs. Diamond Estates Wines |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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