Correlation Between Atrium Mortgage and MCAN Mortgage
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and MCAN Mortgage 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 MCAN Mortgage 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 MCAN Mortgage, you can compare the effects of market volatilities on Atrium Mortgage and MCAN Mortgage 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 MCAN Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and MCAN Mortgage.
Diversification Opportunities for Atrium Mortgage and MCAN Mortgage
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrium and MCAN is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and MCAN Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCAN Mortgage 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 MCAN Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCAN Mortgage has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and MCAN Mortgage go up and down completely randomly.
Pair Corralation between Atrium Mortgage and MCAN Mortgage
Assuming the 90 days horizon Atrium Mortgage is expected to generate 2.43 times less return on investment than MCAN Mortgage. But when comparing it to its historical volatility, Atrium Mortgage Investment is 1.31 times less risky than MCAN Mortgage. It trades about 0.11 of its potential returns per unit of risk. MCAN Mortgage is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,516 in MCAN Mortgage on August 28, 2024 and sell it today you would earn a total of 434.00 from holding MCAN Mortgage or generate 28.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. MCAN Mortgage
Performance |
| Timeline |
| Atrium Mortgage Inve |
| MCAN Mortgage |
Atrium Mortgage and MCAN Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and MCAN Mortgage
The main advantage of trading using opposite Atrium Mortgage and MCAN Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, MCAN Mortgage 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 MCAN Mortgage will offset losses from the drop in MCAN Mortgage'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 |
| MCAN Mortgage vs. Senvest Capital | MCAN Mortgage vs. Fairfax Financial Holdings | MCAN Mortgage vs. Bank of Montreal | MCAN Mortgage vs. Bank of Montreal |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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