Correlation Between Atrium Mortgage and Economic Investment
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Economic Investment 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 Economic Investment 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 Economic Investment Trust, you can compare the effects of market volatilities on Atrium Mortgage and Economic Investment 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 Economic Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Economic Investment.
Diversification Opportunities for Atrium Mortgage and Economic Investment
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrium and Economic is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Economic Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Economic Investment Trust 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 Economic Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Economic Investment Trust has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Economic Investment go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Economic Investment
Assuming the 90 days horizon Atrium Mortgage is expected to generate 3.55 times less return on investment than Economic Investment. But when comparing it to its historical volatility, Atrium Mortgage Investment is 1.33 times less risky than Economic Investment. It trades about 0.03 of its potential returns per unit of risk. Economic Investment Trust is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16,718 in Economic Investment Trust on August 31, 2024 and sell it today you would earn a total of 732.00 from holding Economic Investment Trust or generate 4.38% 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. Economic Investment Trust
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Economic Investment Trust |
Atrium Mortgage and Economic Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Economic Investment
The main advantage of trading using opposite Atrium Mortgage and Economic Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Economic Investment 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 Economic Investment will offset losses from the drop in Economic Investment'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 |
| Economic Investment vs. Forum Energy Metals | Economic Investment vs. iShares Canadian HYBrid | Economic Investment vs. Brompton European Dividend | Economic Investment vs. Solar Alliance Energy |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |