Correlation Between Atrium Mortgage and Lion One
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on Atrium Mortgage and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Lion One.
Diversification Opportunities for Atrium Mortgage and Lion One
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrium and Lion is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Lion One go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Lion One
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.13 times more return on investment than Lion One. However, Atrium Mortgage Investment is 7.98 times less risky than Lion One. It trades about -0.13 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.1 per unit of risk. If you would invest 1,099 in Atrium Mortgage Investment on November 27, 2024 and sell it today you would lose (27.00) from holding Atrium Mortgage Investment or give up 2.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. Lion One Metals
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Lion One Metals |
Atrium Mortgage and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Lion One
The main advantage of trading using opposite Atrium Mortgage and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One'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 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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