Correlation Between Atlas Corp and Amyris
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Amyris 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 Amyris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Amyris Inc, you can compare the effects of market volatilities on Atlas Corp and Amyris 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 Amyris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Amyris.
Diversification Opportunities for Atlas Corp and Amyris
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlas and Amyris is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Amyris Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amyris Inc 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 Amyris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amyris Inc has no effect on the direction of Atlas Corp i.e., Atlas Corp and Amyris go up and down completely randomly.
Pair Corralation between Atlas Corp and Amyris
If you would invest 2,501 in Atlas Corp on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Atlas Corp or generate 0.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Atlas Corp vs. Amyris Inc
Performance |
| Timeline |
| Atlas Corp |
| Amyris Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atlas Corp and Amyris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Amyris
The main advantage of trading using opposite Atlas Corp and Amyris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Amyris 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 Amyris will offset losses from the drop in Amyris' long position.| Atlas Corp vs. Universal Logistics Holdings | Atlas Corp vs. Schneider National | Atlas Corp vs. Marten Transport | Atlas Corp vs. Covenant Logistics Group, |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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