Correlation Between Atlas Corp and Oxbridge Acquisition
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Oxbridge Acquisition 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 Oxbridge Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Oxbridge Acquisition Equity, you can compare the effects of market volatilities on Atlas Corp and Oxbridge Acquisition 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 Oxbridge Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Oxbridge Acquisition.
Diversification Opportunities for Atlas Corp and Oxbridge Acquisition
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atlas and Oxbridge is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Oxbridge Acquisition Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxbridge Acquisition 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 Oxbridge Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxbridge Acquisition has no effect on the direction of Atlas Corp i.e., Atlas Corp and Oxbridge Acquisition go up and down completely randomly.
Pair Corralation between Atlas Corp and Oxbridge Acquisition
If you would invest 2,498 in Atlas Corp on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Atlas Corp or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Atlas Corp vs. Oxbridge Acquisition Equity
Performance |
| Timeline |
| Atlas Corp |
| Oxbridge Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atlas Corp and Oxbridge Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Oxbridge Acquisition
The main advantage of trading using opposite Atlas Corp and Oxbridge Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Oxbridge Acquisition 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 Oxbridge Acquisition will offset losses from the drop in Oxbridge Acquisition'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 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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