Correlation Between Atkore International and Signify NV
Can any of the company-specific risk be diversified away by investing in both Atkore International and Signify NV 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 Atkore International and Signify NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atkore International Group and Signify NV, you can compare the effects of market volatilities on Atkore International and Signify NV 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 Atkore International with a short position of Signify NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atkore International and Signify NV.
Diversification Opportunities for Atkore International and Signify NV
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atkore and Signify is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Atkore International Group and Signify NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Signify NV and Atkore International 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 Atkore International Group are associated (or correlated) with Signify NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Signify NV has no effect on the direction of Atkore International i.e., Atkore International and Signify NV go up and down completely randomly.
Pair Corralation between Atkore International and Signify NV
Given the investment horizon of 90 days Atkore International Group is expected to generate 1.61 times more return on investment than Signify NV. However, Atkore International is 1.61 times more volatile than Signify NV. It trades about 0.1 of its potential returns per unit of risk. Signify NV is currently generating about -0.18 per unit of risk. If you would invest 8,821 in Atkore International Group on August 29, 2024 and sell it today you would earn a total of 674.00 from holding Atkore International Group or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Atkore International Group vs. Signify NV
Performance |
| Timeline |
| Atkore International |
| Signify NV |
Atkore International and Signify NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atkore International and Signify NV
The main advantage of trading using opposite Atkore International and Signify NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atkore International position performs unexpectedly, Signify NV 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 Signify NV will offset losses from the drop in Signify NV's long position.| Atkore International vs. Hubbell | Atkore International vs. Enersys | Atkore International vs. Advanced Energy Industries | Atkore International vs. nVent Electric PLC |
| Signify NV vs. Novonix Ltd ADR | Signify NV vs. Ilika plc | Signify NV vs. FuelPositive Corp | Signify NV vs. Novonix |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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