Correlation Between Atlanticus Holdings and TRINL
Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings and TRINL 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 TRINL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings and TRINL, you can compare the effects of market volatilities on Atlanticus Holdings and TRINL 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 TRINL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and TRINL.
Diversification Opportunities for Atlanticus Holdings and TRINL
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atlanticus and TRINL is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings and TRINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRINL 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 TRINL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRINL has no effect on the direction of Atlanticus Holdings i.e., Atlanticus Holdings and TRINL go up and down completely randomly.
Pair Corralation between Atlanticus Holdings and TRINL
Assuming the 90 days horizon Atlanticus Holdings is expected to generate 6.62 times more return on investment than TRINL. However, Atlanticus Holdings is 6.62 times more volatile than TRINL. It trades about 0.13 of its potential returns per unit of risk. TRINL is currently generating about 0.42 per unit of risk. If you would invest 2,366 in Atlanticus Holdings on September 3, 2024 and sell it today you would earn a total of 41.00 from holding Atlanticus Holdings or generate 1.73% 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. TRINL
Performance |
| Timeline |
| Atlanticus Holdings |
| TRINL |
Atlanticus Holdings and TRINL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlanticus Holdings and TRINL
The main advantage of trading using opposite Atlanticus Holdings and TRINL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings position performs unexpectedly, TRINL 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 TRINL will offset losses from the drop in TRINL'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 |
| TRINL vs. MSCI ACWI exAUCONSUMER | TRINL vs. Eagle Point Credit | TRINL vs. B Riley Financial | TRINL vs. Harrow Health 8625 |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |