Correlation Between Atlas For and A Capital
Can any of the company-specific risk be diversified away by investing in both Atlas For and A Capital 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 Atlas For and A Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas For Investment and A Capital Holding, you can compare the effects of market volatilities on Atlas For and A Capital 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 Atlas For with a short position of A Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas For and A Capital.
Diversification Opportunities for Atlas For and A Capital
Poor diversification
The 3 months correlation between Atlas and ACAP is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Atlas For Investment and A Capital Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A Capital Holding and Atlas For 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 Atlas For Investment are associated (or correlated) with A Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A Capital Holding has no effect on the direction of Atlas For i.e., Atlas For and A Capital go up and down completely randomly.
Pair Corralation between Atlas For and A Capital
Assuming the 90 days trading horizon Atlas For Investment is expected to generate 1.44 times more return on investment than A Capital. However, Atlas For is 1.44 times more volatile than A Capital Holding. It trades about 0.56 of its potential returns per unit of risk. A Capital Holding is currently generating about 0.21 per unit of risk. If you would invest 78.00 in Atlas For Investment on September 12, 2024 and sell it today you would earn a total of 35.00 from holding Atlas For Investment or generate 44.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas For Investment vs. A Capital Holding
Performance |
| Timeline |
| Atlas For Investment |
| A Capital Holding |
Atlas For and A Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas For and A Capital
The main advantage of trading using opposite Atlas For and A Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas For position performs unexpectedly, A Capital 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 A Capital will offset losses from the drop in A Capital's long position.| Atlas For vs. Paint Chemicals Industries | Atlas For vs. Reacap Financial Investments | Atlas For vs. Egyptians For Investment | Atlas For vs. Misr Oils Soap |
| A Capital vs. Paint Chemicals Industries | A Capital vs. Reacap Financial Investments | A Capital vs. Egyptians For Investment | A Capital vs. Misr Oils Soap |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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