Correlation Between Atrium Mortgage and Brompton Lifeco
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Brompton Lifeco 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 Brompton Lifeco 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 Brompton Lifeco Split, you can compare the effects of market volatilities on Atrium Mortgage and Brompton Lifeco 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 Brompton Lifeco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Brompton Lifeco.
Diversification Opportunities for Atrium Mortgage and Brompton Lifeco
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atrium and Brompton is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Brompton Lifeco Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brompton Lifeco 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 Brompton Lifeco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brompton Lifeco Split has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Brompton Lifeco go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Brompton Lifeco
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.48 times more return on investment than Brompton Lifeco. However, Atrium Mortgage Investment is 2.1 times less risky than Brompton Lifeco. It trades about -0.06 of its potential returns per unit of risk. Brompton Lifeco Split is currently generating about -0.09 per unit of risk. If you would invest 1,092 in Atrium Mortgage Investment on October 22, 2024 and sell it today you would lose (14.00) from holding Atrium Mortgage Investment or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. Brompton Lifeco Split
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Brompton Lifeco Split |
Atrium Mortgage and Brompton Lifeco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Brompton Lifeco
The main advantage of trading using opposite Atrium Mortgage and Brompton Lifeco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Brompton Lifeco 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 Brompton Lifeco will offset losses from the drop in Brompton Lifeco'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 |
| Brompton Lifeco vs. Life Banc Split | Brompton Lifeco vs. Brompton Split Banc | Brompton Lifeco vs. Dividend Growth Split | Brompton Lifeco 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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