Correlation Between Cogeco Communications and Atrium Mortgage
Can any of the company-specific risk be diversified away by investing in both Cogeco Communications 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 Cogeco Communications and Atrium Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogeco Communications and Atrium Mortgage Investment, you can compare the effects of market volatilities on Cogeco Communications 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 Cogeco Communications with a short position of Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogeco Communications and Atrium Mortgage.
Diversification Opportunities for Cogeco Communications and Atrium Mortgage
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cogeco and Atrium is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Cogeco Communications 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 Cogeco Communications 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 Cogeco Communications 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 Cogeco Communications i.e., Cogeco Communications and Atrium Mortgage go up and down completely randomly.
Pair Corralation between Cogeco Communications and Atrium Mortgage
Assuming the 90 days trading horizon Cogeco Communications is expected to generate 1.5 times less return on investment than Atrium Mortgage. In addition to that, Cogeco Communications is 3.05 times more volatile than Atrium Mortgage Investment. It trades about 0.05 of its total potential returns per unit of risk. Atrium Mortgage Investment is currently generating about 0.23 per unit of volatility. If you would invest 1,106 in Atrium Mortgage Investment on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Atrium Mortgage Investment or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cogeco Communications vs. Atrium Mortgage Investment
Performance |
| Timeline |
| Cogeco Communications |
| Atrium Mortgage Inve |
Cogeco Communications and Atrium Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogeco Communications and Atrium Mortgage
The main advantage of trading using opposite Cogeco Communications and Atrium Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogeco Communications 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.| Cogeco Communications vs. Berkshire Hathaway CDR | Cogeco Communications vs. Microsoft Corp CDR | Cogeco Communications vs. Apple Inc CDR | Cogeco Communications vs. Alphabet Inc CDR |
| Atrium Mortgage vs. Brompton Lifeco Split | Atrium Mortgage vs. North American Financial | Atrium Mortgage vs. Prime Dividend Corp | Atrium Mortgage vs. Financial 15 Split |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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