Correlation Between Atrium Mortgage and Financial
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Financial 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 Financial 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 Financial 15 Split, you can compare the effects of market volatilities on Atrium Mortgage and Financial 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Financial.
Diversification Opportunities for Atrium Mortgage and Financial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrium and Financial is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Financial 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial 15 Split 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial 15 Split has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Financial go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Financial
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 3.35 times more return on investment than Financial. However, Atrium Mortgage is 3.35 times more volatile than Financial 15 Split. It trades about 0.05 of its potential returns per unit of risk. Financial 15 Split is currently generating about 0.16 per unit of risk. If you would invest 900.00 in Atrium Mortgage Investment on September 3, 2024 and sell it today you would earn a total of 236.00 from holding Atrium Mortgage Investment or generate 26.22% 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. Financial 15 Split
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Financial 15 Split |
Atrium Mortgage and Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Financial
The main advantage of trading using opposite Atrium Mortgage and Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Financial 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 Financial will offset losses from the drop in Financial'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 |
| Financial vs. North American Financial | Financial vs. Dividend 15 Split | Financial vs. Dividend Growth Split | Financial vs. Dividend 15 Split |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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