Correlation Between Atlas Corp and Cambridge Capital
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Cambridge 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 Corp and Cambridge Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Cambridge Capital Holdings, you can compare the effects of market volatilities on Atlas Corp and Cambridge 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 Corp with a short position of Cambridge Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Cambridge Capital.
Diversification Opportunities for Atlas Corp and Cambridge Capital
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Atlas and Cambridge is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Cambridge Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Capital 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 Cambridge Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Capital has no effect on the direction of Atlas Corp i.e., Atlas Corp and Cambridge Capital go up and down completely randomly.
Pair Corralation between Atlas Corp and Cambridge Capital
If you would invest 15.00 in Cambridge Capital Holdings on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Cambridge Capital Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 91.3% |
| Values | Daily Returns |
Atlas Corp vs. Cambridge Capital Holdings
Performance |
| Timeline |
| Atlas Corp |
| Cambridge Capital |
Atlas Corp and Cambridge Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Cambridge Capital
The main advantage of trading using opposite Atlas Corp and Cambridge Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Cambridge 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 Cambridge Capital will offset losses from the drop in Cambridge Capital'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 |
| Cambridge Capital vs. South32 Limited | Cambridge Capital vs. NioCorp Developments Ltd | Cambridge Capital vs. HUMANA INC | Cambridge Capital 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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