Correlation Between Atlas Corp and AirBoss Of
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and AirBoss Of 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 AirBoss Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and AirBoss of America, you can compare the effects of market volatilities on Atlas Corp and AirBoss Of 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 AirBoss Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and AirBoss Of.
Diversification Opportunities for Atlas Corp and AirBoss Of
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atlas and AirBoss is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and AirBoss of America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AirBoss of America 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 AirBoss Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AirBoss of America has no effect on the direction of Atlas Corp i.e., Atlas Corp and AirBoss Of go up and down completely randomly.
Pair Corralation between Atlas Corp and AirBoss Of
Assuming the 90 days horizon Atlas Corp is expected to generate 0.13 times more return on investment than AirBoss Of. However, Atlas Corp is 7.76 times less risky than AirBoss Of. It trades about 0.1 of its potential returns per unit of risk. AirBoss of America is currently generating about -0.03 per unit of risk. If you would invest 2,083 in Atlas Corp on August 31, 2024 and sell it today you would earn a total of 425.00 from holding Atlas Corp or generate 20.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.86% |
| Values | Daily Returns |
Atlas Corp vs. AirBoss of America
Performance |
| Timeline |
| Atlas Corp |
| AirBoss of America |
Atlas Corp and AirBoss Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and AirBoss Of
The main advantage of trading using opposite Atlas Corp and AirBoss Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, AirBoss Of 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 AirBoss Of will offset losses from the drop in AirBoss Of's long position.| Atlas Corp vs. Harrow Health 8625 | Atlas Corp vs. Babcock Wilcox Enterprises, | Atlas Corp vs. B Riley Financial | Atlas Corp vs. Oxford Lane Capital |
| AirBoss Of vs. South32 Limited | AirBoss Of vs. NioCorp Developments Ltd | AirBoss Of vs. HUMANA INC | AirBoss Of vs. SCOR PK |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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