Correlation Between Atlas Corp and Stella Jones
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Stella Jones 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 Stella Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Stella Jones, you can compare the effects of market volatilities on Atlas Corp and Stella Jones 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 Stella Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Stella Jones.
Diversification Opportunities for Atlas Corp and Stella Jones
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Atlas and Stella is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Stella Jones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stella Jones 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 Stella Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stella Jones has no effect on the direction of Atlas Corp i.e., Atlas Corp and Stella Jones go up and down completely randomly.
Pair Corralation between Atlas Corp and Stella Jones
Assuming the 90 days horizon Atlas Corp is expected to generate 0.12 times more return on investment than Stella Jones. However, Atlas Corp is 8.69 times less risky than Stella Jones. It trades about 0.03 of its potential returns per unit of risk. Stella Jones is currently generating about -0.24 per unit of risk. If you would invest 2,498 in Atlas Corp on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Atlas Corp or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Corp vs. Stella Jones
Performance |
| Timeline |
| Atlas Corp |
| Stella Jones |
Atlas Corp and Stella Jones Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Corp and Stella Jones
The main advantage of trading using opposite Atlas Corp and Stella Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Stella Jones 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 Stella Jones will offset losses from the drop in Stella Jones' long position.| Atlas Corp vs. Old Dominion Freight | Atlas Corp vs. ArcBest Corp | Atlas Corp vs. Knight Transportation | Atlas Corp vs. Universal Logistics Holdings |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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