Correlation Between Atlas Corp and NorthIsle Copper
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and NorthIsle Copper 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 NorthIsle Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and NorthIsle Copper and, you can compare the effects of market volatilities on Atlas Corp and NorthIsle Copper 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 NorthIsle Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and NorthIsle Copper.
Diversification Opportunities for Atlas Corp and NorthIsle Copper
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlas and NorthIsle is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and NorthIsle Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NorthIsle Copper 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 NorthIsle Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NorthIsle Copper has no effect on the direction of Atlas Corp i.e., Atlas Corp and NorthIsle Copper go up and down completely randomly.
Pair Corralation between Atlas Corp and NorthIsle Copper
Assuming the 90 days horizon Atlas Corp is expected to generate 0.07 times more return on investment than NorthIsle Copper. However, Atlas Corp is 13.6 times less risky than NorthIsle Copper. It trades about -0.05 of its potential returns per unit of risk. NorthIsle Copper and is currently generating about -0.07 per unit of risk. If you would invest 2,517 in Atlas Corp on September 3, 2024 and sell it today you would lose (9.00) from holding Atlas Corp or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Corp vs. NorthIsle Copper and
Performance |
| Timeline |
| Atlas Corp |
| NorthIsle Copper |
Atlas Corp and NorthIsle Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and NorthIsle Copper
The main advantage of trading using opposite Atlas Corp and NorthIsle Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, NorthIsle Copper 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 NorthIsle Copper will offset losses from the drop in NorthIsle Copper'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 |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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