Correlation Between Canadian Imperial and Atrium Mortgage
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial 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 Canadian Imperial and Atrium Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Imperial Bank and Atrium Mortgage Investment, you can compare the effects of market volatilities on Canadian Imperial 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 Canadian Imperial with a short position of Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and Atrium Mortgage.
Diversification Opportunities for Canadian Imperial and Atrium Mortgage
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canadian and Atrium is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank 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 Canadian Imperial 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 Canadian Imperial Bank 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 Canadian Imperial i.e., Canadian Imperial and Atrium Mortgage go up and down completely randomly.
Pair Corralation between Canadian Imperial and Atrium Mortgage
Assuming the 90 days trading horizon Canadian Imperial is expected to generate 1.06 times less return on investment than Atrium Mortgage. But when comparing it to its historical volatility, Canadian Imperial Bank is 1.46 times less risky than Atrium Mortgage. It trades about 0.07 of its potential returns per unit of risk. Atrium Mortgage Investment is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 900.00 in Atrium Mortgage Investment on September 3, 2024 and sell it today you would earn a total of 236.00 from holding Atrium Mortgage Investment or generate 26.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Imperial Bank vs. Atrium Mortgage Investment
Performance |
| Timeline |
| Canadian Imperial Bank |
| Atrium Mortgage Inve |
Canadian Imperial and Atrium Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Imperial and Atrium Mortgage
The main advantage of trading using opposite Canadian Imperial and Atrium Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial 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.| Canadian Imperial vs. E Split Corp | Canadian Imperial vs. E Split Corp | Canadian Imperial vs. Sage Potash Corp |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |