Correlation Between Atrium Mortgage and Brookfield Investments
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Brookfield Investments 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 Investments 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 Investments, you can compare the effects of market volatilities on Atrium Mortgage and Brookfield Investments 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 Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Brookfield Investments.
Diversification Opportunities for Atrium Mortgage and Brookfield Investments
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrium and Brookfield is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Brookfield Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Investments 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 Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Investments has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Brookfield Investments go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Brookfield Investments
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 2.95 times more return on investment than Brookfield Investments. However, Atrium Mortgage is 2.95 times more volatile than Brookfield Investments. It trades about 0.05 of its potential returns per unit of risk. Brookfield Investments is currently generating about 0.0 per unit of risk. If you would invest 881.00 in Atrium Mortgage Investment on September 2, 2024 and sell it today you would earn a total of 255.00 from holding Atrium Mortgage Investment or generate 28.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.02% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. Brookfield Investments
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Brookfield Investments |
Atrium Mortgage and Brookfield Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Brookfield Investments
The main advantage of trading using opposite Atrium Mortgage and Brookfield Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Brookfield Investments 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 Investments will offset losses from the drop in Brookfield Investments' 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 |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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