Correlation Between Atrium Mortgage and Fiera Capital
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Fiera Capital 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 Fiera Capital 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 Fiera Capital, you can compare the effects of market volatilities on Atrium Mortgage and Fiera Capital 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 Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Fiera Capital.
Diversification Opportunities for Atrium Mortgage and Fiera Capital
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atrium and Fiera is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital 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 Fiera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiera Capital has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Fiera Capital go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Fiera Capital
Assuming the 90 days horizon Atrium Mortgage is expected to generate 16.6 times less return on investment than Fiera Capital. But when comparing it to its historical volatility, Atrium Mortgage Investment is 5.75 times less risky than Fiera Capital. It trades about 0.04 of its potential returns per unit of risk. Fiera Capital is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 906.00 in Fiera Capital on August 25, 2024 and sell it today you would earn a total of 77.00 from holding Fiera Capital or generate 8.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. Fiera Capital
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Fiera Capital |
Atrium Mortgage and Fiera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Fiera Capital
The main advantage of trading using opposite Atrium Mortgage and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Fiera Capital 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 Fiera Capital will offset losses from the drop in Fiera Capital'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 |
| Fiera Capital vs. Timbercreek Financial Corp | Fiera Capital vs. Alaris Equity Partners | Fiera Capital vs. Slate Grocery REIT | Fiera Capital vs. NorthWest Healthcare Properties |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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