Correlation Between Atlas Corp and State Street
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and State Street 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 State Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and State Street, you can compare the effects of market volatilities on Atlas Corp and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and State Street.
Diversification Opportunities for Atlas Corp and State Street
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atlas and State is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and State Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street has no effect on the direction of Atlas Corp i.e., Atlas Corp and State Street go up and down completely randomly.
Pair Corralation between Atlas Corp and State Street
Assuming the 90 days trading horizon Atlas Corp is expected to generate 1.23 times more return on investment than State Street. However, Atlas Corp is 1.23 times more volatile than State Street. It trades about 0.07 of its potential returns per unit of risk. State Street is currently generating about 0.03 per unit of risk. If you would invest 1,785 in Atlas Corp on August 31, 2024 and sell it today you would earn a total of 705.00 from holding Atlas Corp or generate 39.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Corp vs. State Street
Performance |
| Timeline |
| Atlas Corp |
| State Street |
Atlas Corp and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and State Street
The main advantage of trading using opposite Atlas Corp and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Atlas Corp vs. Atlas Corp | Atlas Corp vs. Costamare | Atlas Corp vs. Costamare | Atlas Corp vs. Aquagold International |
| State Street vs. The Gabelli Equity | State Street vs. The Gabelli Multimedia | State Street vs. The Gabelli Equity | State Street vs. Virtus AllianzGI Convertible |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |