Correlation Between Atlas Corp and Chicago Atlantic
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Chicago Atlantic 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 Corp and Chicago Atlantic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Chicago Atlantic BDC,, you can compare the effects of market volatilities on Atlas Corp and Chicago Atlantic 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 Corp with a short position of Chicago Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Chicago Atlantic.
Diversification Opportunities for Atlas Corp and Chicago Atlantic
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlas and Chicago is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Chicago Atlantic BDC, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicago Atlantic BDC, and Atlas Corp 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 Corp are associated (or correlated) with Chicago Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicago Atlantic BDC, has no effect on the direction of Atlas Corp i.e., Atlas Corp and Chicago Atlantic go up and down completely randomly.
Pair Corralation between Atlas Corp and Chicago Atlantic
Assuming the 90 days trading horizon Atlas Corp is expected to generate 0.38 times more return on investment than Chicago Atlantic. However, Atlas Corp is 2.62 times less risky than Chicago Atlantic. It trades about 0.07 of its potential returns per unit of risk. Chicago Atlantic BDC, is currently generating about -0.09 per unit of risk. If you would invest 2,486 in Atlas Corp on August 27, 2024 and sell it today you would earn a total of 14.00 from holding Atlas Corp or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Corp vs. Chicago Atlantic BDC,
Performance |
| Timeline |
| Atlas Corp |
| Chicago Atlantic BDC, |
Atlas Corp and Chicago Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Chicago Atlantic
The main advantage of trading using opposite Atlas Corp and Chicago Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Chicago Atlantic 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 Chicago Atlantic will offset losses from the drop in Chicago Atlantic's long position.| Atlas Corp vs. Costamare | Atlas Corp vs. Costamare | Atlas Corp vs. HUMANA INC | Atlas Corp vs. Aquagold International |
| Chicago Atlantic vs. Prospect Capital | Chicago Atlantic vs. State Street | Chicago Atlantic vs. OFS Credit Company, | Chicago Atlantic vs. OFS Credit |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |