Correlation Between Atrium Mortgage and Highway 50
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Highway 50 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 Highway 50 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 Highway 50 Gold, you can compare the effects of market volatilities on Atrium Mortgage and Highway 50 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 Highway 50. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Highway 50.
Diversification Opportunities for Atrium Mortgage and Highway 50
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrium and Highway is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Highway 50 Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highway 50 Gold 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 Highway 50. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highway 50 Gold has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Highway 50 go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Highway 50
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.07 times more return on investment than Highway 50. However, Atrium Mortgage Investment is 13.81 times less risky than Highway 50. It trades about 0.31 of its potential returns per unit of risk. Highway 50 Gold is currently generating about -0.23 per unit of risk. If you would invest 1,092 in Atrium Mortgage Investment on September 4, 2024 and sell it today you would earn a total of 38.00 from holding Atrium Mortgage Investment or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. Highway 50 Gold
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Highway 50 Gold |
Atrium Mortgage and Highway 50 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Highway 50
The main advantage of trading using opposite Atrium Mortgage and Highway 50 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Highway 50 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 Highway 50 will offset losses from the drop in Highway 50'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 |
| Highway 50 vs. Andlauer Healthcare Gr | Highway 50 vs. NorthWest Healthcare Properties | Highway 50 vs. Electra Battery Materials | Highway 50 vs. UnitedHealth Group CDR |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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