Correlation Between Fiera Capital and Atrium Mortgage
Can any of the company-specific risk be diversified away by investing in both Fiera Capital 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 Fiera Capital and Atrium Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiera Capital and Atrium Mortgage Investment, you can compare the effects of market volatilities on Fiera Capital 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 Fiera Capital with a short position of Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiera Capital and Atrium Mortgage.
Diversification Opportunities for Fiera Capital and Atrium Mortgage
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fiera and Atrium is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fiera Capital 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 Fiera Capital 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 Fiera Capital 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 Fiera Capital i.e., Fiera Capital and Atrium Mortgage go up and down completely randomly.
Pair Corralation between Fiera Capital and Atrium Mortgage
Assuming the 90 days trading horizon Fiera Capital is expected to generate 5.41 times more return on investment than Atrium Mortgage. However, Fiera Capital is 5.41 times more volatile than Atrium Mortgage Investment. It trades about 0.05 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 956.00 in Fiera Capital on August 28, 2024 and sell it today you would earn a total of 27.00 from holding Fiera Capital or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fiera Capital vs. Atrium Mortgage Investment
Performance |
| Timeline |
| Fiera Capital |
| Atrium Mortgage Inve |
Fiera Capital and Atrium Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiera Capital and Atrium Mortgage
The main advantage of trading using opposite Fiera Capital and Atrium Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiera Capital 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.| Fiera Capital vs. Timbercreek Financial Corp | Fiera Capital vs. Alaris Equity Partners | Fiera Capital vs. Slate Grocery REIT | Fiera Capital vs. NorthWest Healthcare Properties |
| 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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