Correlation Between Brookfield Investments and Atrium Mortgage
Can any of the company-specific risk be diversified away by investing in both Brookfield Investments and Atrium Mortgage 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 Brookfield Investments and Atrium Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookfield Investments and Atrium Mortgage Investment, you can compare the effects of market volatilities on Brookfield Investments and Atrium Mortgage 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 Brookfield Investments with a short position of Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookfield Investments and Atrium Mortgage.
Diversification Opportunities for Brookfield Investments and Atrium Mortgage
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brookfield and Atrium is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Brookfield Investments and Atrium Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Mortgage Inve and Brookfield Investments 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 Brookfield Investments are associated (or correlated) with Atrium Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Mortgage Inve has no effect on the direction of Brookfield Investments i.e., Brookfield Investments and Atrium Mortgage go up and down completely randomly.
Pair Corralation between Brookfield Investments and Atrium Mortgage
Assuming the 90 days trading horizon Brookfield Investments is expected to under-perform the Atrium Mortgage. But the stock apears to be less risky and, when comparing its historical volatility, Brookfield Investments is 2.95 times less risky than Atrium Mortgage. The stock trades about 0.0 of its potential returns per unit of risk. The Atrium Mortgage Investment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 881.00 in Atrium Mortgage Investment on September 2, 2024 and sell it today you would earn a total of 255.00 from holding Atrium Mortgage Investment or generate 28.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.02% |
| Values | Daily Returns |
Brookfield Investments vs. Atrium Mortgage Investment
Performance |
| Timeline |
| Brookfield Investments |
| Atrium Mortgage Inve |
Brookfield Investments and Atrium Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookfield Investments and Atrium Mortgage
The main advantage of trading using opposite Brookfield Investments and Atrium Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookfield Investments position performs unexpectedly, Atrium Mortgage 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 Atrium Mortgage will offset losses from the drop in Atrium Mortgage's long position.| Brookfield Investments vs. Apple Inc CDR | Brookfield Investments vs. NVIDIA CDR | Brookfield Investments vs. Microsoft Corp CDR | Brookfield Investments vs. Amazon CDR |
| Atrium Mortgage vs. Timbercreek Financial Corp | Atrium Mortgage vs. Firm Capital Mortgage | Atrium Mortgage vs. MCAN Mortgage | Atrium Mortgage vs. First National Financial |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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