Correlation Between Dun Bradstreet and ATIF Holdings
Can any of the company-specific risk be diversified away by investing in both Dun Bradstreet and ATIF Holdings 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 Dun Bradstreet and ATIF Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dun Bradstreet Holdings and ATIF Holdings, you can compare the effects of market volatilities on Dun Bradstreet and ATIF Holdings 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 Dun Bradstreet with a short position of ATIF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dun Bradstreet and ATIF Holdings.
Diversification Opportunities for Dun Bradstreet and ATIF Holdings
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dun and ATIF is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Dun Bradstreet Holdings and ATIF Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATIF Holdings and Dun Bradstreet 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 Dun Bradstreet Holdings are associated (or correlated) with ATIF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATIF Holdings has no effect on the direction of Dun Bradstreet i.e., Dun Bradstreet and ATIF Holdings go up and down completely randomly.
Pair Corralation between Dun Bradstreet and ATIF Holdings
Considering the 90-day investment horizon Dun Bradstreet is expected to generate 4.8 times less return on investment than ATIF Holdings. But when comparing it to its historical volatility, Dun Bradstreet Holdings is 6.08 times less risky than ATIF Holdings. It trades about 0.06 of its potential returns per unit of risk. ATIF Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 64.00 in ATIF Holdings on September 2, 2024 and sell it today you would earn a total of 1.00 from holding ATIF Holdings or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dun Bradstreet Holdings vs. ATIF Holdings
Performance |
| Timeline |
| Dun Bradstreet Holdings |
| ATIF Holdings |
Dun Bradstreet and ATIF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dun Bradstreet and ATIF Holdings
The main advantage of trading using opposite Dun Bradstreet and ATIF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dun Bradstreet position performs unexpectedly, ATIF Holdings 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 ATIF Holdings will offset losses from the drop in ATIF Holdings' long position.| Dun Bradstreet vs. FactSet Research Systems | Dun Bradstreet vs. Moodys | Dun Bradstreet vs. MSCI Inc | Dun Bradstreet vs. Intercontinental Exchange |
| ATIF Holdings vs. SPENN Technology AS | ATIF Holdings vs. Arcane Crypto AB | ATIF Holdings vs. OFX Group Ltd | ATIF Holdings vs. Blockmate Ventures |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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