Correlation Between Atlanticus Holdings and Nelnet
Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings and Nelnet 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 Nelnet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings Corp and Nelnet Inc, you can compare the effects of market volatilities on Atlanticus Holdings and Nelnet 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 Nelnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and Nelnet.
Diversification Opportunities for Atlanticus Holdings and Nelnet
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlanticus and Nelnet is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings Corp and Nelnet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nelnet Inc 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 Corp are associated (or correlated) with Nelnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nelnet Inc has no effect on the direction of Atlanticus Holdings i.e., Atlanticus Holdings and Nelnet go up and down completely randomly.
Pair Corralation between Atlanticus Holdings and Nelnet
Assuming the 90 days horizon Atlanticus Holdings Corp is expected to generate 1.2 times more return on investment than Nelnet. However, Atlanticus Holdings is 1.2 times more volatile than Nelnet Inc. It trades about 0.04 of its potential returns per unit of risk. Nelnet Inc is currently generating about 0.03 per unit of risk. If you would invest 1,822 in Atlanticus Holdings Corp on August 27, 2024 and sell it today you would earn a total of 555.00 from holding Atlanticus Holdings Corp or generate 30.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlanticus Holdings Corp vs. Nelnet Inc
Performance |
| Timeline |
| Atlanticus Holdings Corp |
| Nelnet Inc |
Atlanticus Holdings and Nelnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlanticus Holdings and Nelnet
The main advantage of trading using opposite Atlanticus Holdings and Nelnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings position performs unexpectedly, Nelnet 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 Nelnet will offset losses from the drop in Nelnet's long position.| Atlanticus Holdings vs. Citizens Financial Group | Atlanticus Holdings vs. Wells Fargo | Atlanticus Holdings vs. Equitable Holdings |
| Nelnet vs. SLM Corp Pb | Nelnet vs. FirstCash | Nelnet vs. Navient Corp | Nelnet vs. Federal Agricultural Mortgage |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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