Correlation Between Atrium Mortgage and Brookfield Office
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Brookfield Office 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 Brookfield Office 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 Brookfield Office Properties, you can compare the effects of market volatilities on Atrium Mortgage and Brookfield Office 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 Brookfield Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Brookfield Office.
Diversification Opportunities for Atrium Mortgage and Brookfield Office
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atrium and Brookfield is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Brookfield Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Office 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 Brookfield Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Office has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Brookfield Office go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Brookfield Office
Assuming the 90 days horizon Atrium Mortgage is expected to generate 7.79 times less return on investment than Brookfield Office. But when comparing it to its historical volatility, Atrium Mortgage Investment is 7.63 times less risky than Brookfield Office. It trades about 0.04 of its potential returns per unit of risk. Brookfield Office Properties is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 929.00 in Brookfield Office Properties on October 12, 2024 and sell it today you would earn a total of 71.00 from holding Brookfield Office Properties or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.39% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. Brookfield Office Properties
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Brookfield Office |
Atrium Mortgage and Brookfield Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Brookfield Office
The main advantage of trading using opposite Atrium Mortgage and Brookfield Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Brookfield Office 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 Brookfield Office will offset losses from the drop in Brookfield Office'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 |
| Brookfield Office vs. NextSource Materials | Brookfield Office vs. Atrium Mortgage Investment | Brookfield Office vs. Diversified Royalty Corp | Brookfield Office vs. Capstone Mining 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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