Correlation Between Atrium Mortgage and InPlay Oil
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and InPlay Oil 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 InPlay Oil 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 InPlay Oil Corp, you can compare the effects of market volatilities on Atrium Mortgage and InPlay Oil 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 InPlay Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and InPlay Oil.
Diversification Opportunities for Atrium Mortgage and InPlay Oil
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atrium and InPlay is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and InPlay Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InPlay Oil Corp 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 InPlay Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InPlay Oil Corp has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and InPlay Oil go up and down completely randomly.
Pair Corralation between Atrium Mortgage and InPlay Oil
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.5 times more return on investment than InPlay Oil. However, Atrium Mortgage Investment is 1.98 times less risky than InPlay Oil. It trades about 0.01 of its potential returns per unit of risk. InPlay Oil Corp is currently generating about -0.03 per unit of risk. If you would invest 1,023 in Atrium Mortgage Investment on November 27, 2024 and sell it today you would earn a total of 49.00 from holding Atrium Mortgage Investment or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. InPlay Oil Corp
Performance |
| Timeline |
| Atrium Mortgage Inve |
| InPlay Oil Corp |
Atrium Mortgage and InPlay Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and InPlay Oil
The main advantage of trading using opposite Atrium Mortgage and InPlay Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, InPlay Oil 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 InPlay Oil will offset losses from the drop in InPlay Oil'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 |
| InPlay Oil vs. Journey Energy | InPlay Oil vs. Yangarra Resources | InPlay Oil vs. Obsidian Energy | InPlay Oil vs. Pine Cliff 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 Stocks Directory module to find actively traded stocks across global markets.
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