Correlation Between Atlas Corp and CEMATRIX
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and CEMATRIX 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 CEMATRIX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and CEMATRIX, you can compare the effects of market volatilities on Atlas Corp and CEMATRIX 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 CEMATRIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and CEMATRIX.
Diversification Opportunities for Atlas Corp and CEMATRIX
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atlas and CEMATRIX is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and CEMATRIX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEMATRIX 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 CEMATRIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEMATRIX has no effect on the direction of Atlas Corp i.e., Atlas Corp and CEMATRIX go up and down completely randomly.
Pair Corralation between Atlas Corp and CEMATRIX
Assuming the 90 days horizon Atlas Corp is expected to generate 3.46 times less return on investment than CEMATRIX. But when comparing it to its historical volatility, Atlas Corp is 9.74 times less risky than CEMATRIX. It trades about 0.1 of its potential returns per unit of risk. CEMATRIX is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 17.00 in CEMATRIX on August 31, 2024 and sell it today you would earn a total of 4.00 from holding CEMATRIX or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Corp vs. CEMATRIX
Performance |
| Timeline |
| Atlas Corp |
| CEMATRIX |
Atlas Corp and CEMATRIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and CEMATRIX
The main advantage of trading using opposite Atlas Corp and CEMATRIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, CEMATRIX 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 CEMATRIX will offset losses from the drop in CEMATRIX'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 |
| CEMATRIX vs. Tecnoglass | CEMATRIX vs. Xinyi Glass Holdings | CEMATRIX vs. Anhui Conch Cement | CEMATRIX vs. Basanite |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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