Correlation Between Exchange Traded and ATS
Can any of the company-specific risk be diversified away by investing in both Exchange Traded and ATS 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 Exchange Traded and ATS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exchange Traded Concepts and ATS Corporation, you can compare the effects of market volatilities on Exchange Traded and ATS 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 Exchange Traded with a short position of ATS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Traded and ATS.
Diversification Opportunities for Exchange Traded and ATS
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exchange and ATS is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Traded Concepts and ATS Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATS Corporation and Exchange Traded 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 Exchange Traded Concepts are associated (or correlated) with ATS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATS Corporation has no effect on the direction of Exchange Traded i.e., Exchange Traded and ATS go up and down completely randomly.
Pair Corralation between Exchange Traded and ATS
Considering the 90-day investment horizon Exchange Traded Concepts is expected to under-perform the ATS. But the etf apears to be less risky and, when comparing its historical volatility, Exchange Traded Concepts is 1.57 times less risky than ATS. The etf trades about -0.01 of its potential returns per unit of risk. The ATS Corporation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,260 in ATS Corporation on August 29, 2024 and sell it today you would lose (161.00) from holding ATS Corporation or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.94% |
| Values | Daily Returns |
Exchange Traded Concepts vs. ATS Corp.
Performance |
| Timeline |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| ATS Corporation |
Exchange Traded and ATS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exchange Traded and ATS
The main advantage of trading using opposite Exchange Traded and ATS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Traded position performs unexpectedly, ATS 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 ATS will offset losses from the drop in ATS's long position.The idea behind Exchange Traded Concepts and ATS Corporation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |