Correlation Between Atlanticus Holdings and Perceptive Capital
Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings and Perceptive Capital 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 Atlanticus Holdings and Perceptive Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings and Perceptive Capital Solutions, you can compare the effects of market volatilities on Atlanticus Holdings and Perceptive Capital 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 Atlanticus Holdings with a short position of Perceptive Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and Perceptive Capital.
Diversification Opportunities for Atlanticus Holdings and Perceptive Capital
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlanticus and Perceptive is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings and Perceptive Capital Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perceptive Capital and Atlanticus Holdings 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 Atlanticus Holdings are associated (or correlated) with Perceptive Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perceptive Capital has no effect on the direction of Atlanticus Holdings i.e., Atlanticus Holdings and Perceptive Capital go up and down completely randomly.
Pair Corralation between Atlanticus Holdings and Perceptive Capital
Assuming the 90 days horizon Atlanticus Holdings is expected to generate 5.96 times more return on investment than Perceptive Capital. However, Atlanticus Holdings is 5.96 times more volatile than Perceptive Capital Solutions. It trades about 0.04 of its potential returns per unit of risk. Perceptive Capital Solutions is currently generating about 0.18 per unit of risk. If you would invest 2,356 in Atlanticus Holdings on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Atlanticus Holdings or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlanticus Holdings vs. Perceptive Capital Solutions
Performance |
| Timeline |
| Atlanticus Holdings |
| Perceptive Capital |
Atlanticus Holdings and Perceptive Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlanticus Holdings and Perceptive Capital
The main advantage of trading using opposite Atlanticus Holdings and Perceptive Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings position performs unexpectedly, Perceptive Capital 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 Perceptive Capital will offset losses from the drop in Perceptive Capital's long position.| Atlanticus Holdings vs. B Riley Financial | Atlanticus Holdings vs. Atlanticus Holdings Corp | Atlanticus Holdings vs. Atlas Corp | Atlanticus Holdings vs. Harrow Health 8625 |
| Perceptive Capital vs. Atlanticus Holdings | Perceptive Capital vs. Great Elm Capital | Perceptive Capital vs. Aquagold International | Perceptive Capital vs. Morningstar Unconstrained Allocation |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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