Correlation Between Atrium Mortgage and ISign Media
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and ISign Media 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 ISign Media 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 iSign Media Solutions, you can compare the effects of market volatilities on Atrium Mortgage and ISign Media 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 ISign Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and ISign Media.
Diversification Opportunities for Atrium Mortgage and ISign Media
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrium and ISign is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and iSign Media Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSign Media Solutions 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 ISign Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSign Media Solutions has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and ISign Media go up and down completely randomly.
Pair Corralation between Atrium Mortgage and ISign Media
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.47 times more return on investment than ISign Media. However, Atrium Mortgage Investment is 2.12 times less risky than ISign Media. It trades about 0.35 of its potential returns per unit of risk. iSign Media Solutions is currently generating about -0.05 per unit of risk. If you would invest 1,094 in Atrium Mortgage Investment on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Atrium Mortgage Investment or generate 3.84% 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. iSign Media Solutions
Performance |
| Timeline |
| Atrium Mortgage Inve |
| iSign Media Solutions |
Atrium Mortgage and ISign Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and ISign Media
The main advantage of trading using opposite Atrium Mortgage and ISign Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, ISign Media 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 ISign Media will offset losses from the drop in ISign Media'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 |
| ISign Media vs. Moovly Media | ISign Media vs. Lite Access Technologies | ISign Media vs. Braille Energy Systems | ISign Media 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 Stocks Directory module to find actively traded stocks across global markets.
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