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
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Canadian and Atrium is -0.44. 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 horizon Canadian Imperial Bank is expected to generate 1.2 times more return on investment than Atrium Mortgage. However, Canadian Imperial is 1.2 times more volatile than Atrium Mortgage Investment. It trades about 0.28 of its potential returns per unit of risk. Atrium Mortgage Investment is currently generating about 0.09 per unit of risk. If you would invest 6,600 in Canadian Imperial Bank on September 2, 2024 and sell it today you would earn a total of 2,488 from holding Canadian Imperial Bank or generate 37.7% 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. Bank of Montreal | Canadian Imperial vs. Bank of Nova | Canadian Imperial vs. Royal Bank of | Canadian Imperial vs. Toronto Dominion Bank |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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