Correlation Between Fab Form and Atlas Engineered
Can any of the company-specific risk be diversified away by investing in both Fab Form and Atlas Engineered 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 Fab Form and Atlas Engineered into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fab Form Industries and Atlas Engineered Products, you can compare the effects of market volatilities on Fab Form and Atlas Engineered 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 Fab Form with a short position of Atlas Engineered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fab Form and Atlas Engineered.
Diversification Opportunities for Fab Form and Atlas Engineered
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fab and Atlas is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fab Form Industries and Atlas Engineered Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Engineered Products and Fab Form 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 Fab Form Industries are associated (or correlated) with Atlas Engineered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Engineered Products has no effect on the direction of Fab Form i.e., Fab Form and Atlas Engineered go up and down completely randomly.
Pair Corralation between Fab Form and Atlas Engineered
Assuming the 90 days horizon Fab Form is expected to generate 2.36 times less return on investment than Atlas Engineered. In addition to that, Fab Form is 1.38 times more volatile than Atlas Engineered Products. It trades about 0.01 of its total potential returns per unit of risk. Atlas Engineered Products is currently generating about 0.05 per unit of volatility. If you would invest 70.00 in Atlas Engineered Products on August 30, 2024 and sell it today you would earn a total of 45.00 from holding Atlas Engineered Products or generate 64.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fab Form Industries vs. Atlas Engineered Products
Performance |
| Timeline |
| Fab Form Industries |
| Atlas Engineered Products |
Fab Form and Atlas Engineered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fab Form and Atlas Engineered
The main advantage of trading using opposite Fab Form and Atlas Engineered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fab Form position performs unexpectedly, Atlas Engineered 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 Atlas Engineered will offset losses from the drop in Atlas Engineered's long position.| Fab Form vs. Atlas Engineered Products | Fab Form vs. Inventronics | Fab Form vs. Imaflex | Fab Form vs. AirIQ Inc |
| Atlas Engineered vs. Cielo Waste Solutions | Atlas Engineered vs. Forstrong Global Income | Atlas Engineered vs. Terreno Resources Corp | Atlas Engineered vs. iShares Canadian HYBrid |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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