Correlation Between Canadian Natural and Atrium Mortgage
Can any of the company-specific risk be diversified away by investing in both Canadian Natural 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 Natural 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 Natural Resources and Atrium Mortgage Investment, you can compare the effects of market volatilities on Canadian Natural 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 Natural with a short position of Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Natural and Atrium Mortgage.
Diversification Opportunities for Canadian Natural and Atrium Mortgage
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Canadian and Atrium is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Natural Resources 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 Natural 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 Natural Resources 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 Natural i.e., Canadian Natural and Atrium Mortgage go up and down completely randomly.
Pair Corralation between Canadian Natural and Atrium Mortgage
Assuming the 90 days trading horizon Canadian Natural is expected to generate 9.57 times less return on investment than Atrium Mortgage. In addition to that, Canadian Natural is 2.15 times more volatile than Atrium Mortgage Investment. It trades about 0.0 of its total potential returns per unit of risk. Atrium Mortgage Investment is currently generating about 0.09 per unit of volatility. If you would invest 1,043 in Atrium Mortgage Investment on September 2, 2024 and sell it today you would earn a total of 93.00 from holding Atrium Mortgage Investment or generate 8.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Natural Resources vs. Atrium Mortgage Investment
Performance |
| Timeline |
| Canadian Natural Res |
| Atrium Mortgage Inve |
Canadian Natural and Atrium Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canadian Natural and Atrium Mortgage
The main advantage of trading using opposite Canadian Natural and Atrium Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Natural 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 Natural vs. Suncor Energy | Canadian Natural vs. Cenovus Energy | Canadian Natural vs. TC Energy Corp | Canadian Natural vs. Enbridge |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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