Correlation Between Green Dot and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both Green Dot and Atlanticus 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 Green Dot and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Dot and Atlanticus Holdings Corp, you can compare the effects of market volatilities on Green Dot and Atlanticus 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 Green Dot with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Dot and Atlanticus Holdings.
Diversification Opportunities for Green Dot and Atlanticus Holdings
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Green and Atlanticus is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Green Dot and Atlanticus Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings Corp and Green Dot 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 Green Dot are associated (or correlated) with Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings Corp has no effect on the direction of Green Dot i.e., Green Dot and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between Green Dot and Atlanticus Holdings
Given the investment horizon of 90 days Green Dot is expected to generate 2.9 times more return on investment than Atlanticus Holdings. However, Green Dot is 2.9 times more volatile than Atlanticus Holdings Corp. It trades about 0.03 of its potential returns per unit of risk. Atlanticus Holdings Corp is currently generating about 0.04 per unit of risk. If you would invest 947.00 in Green Dot on September 12, 2024 and sell it today you would earn a total of 152.00 from holding Green Dot or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Dot vs. Atlanticus Holdings Corp
Performance |
| Timeline |
| Green Dot |
| Atlanticus Holdings Corp |
Green Dot and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Dot and Atlanticus Holdings
The main advantage of trading using opposite Green Dot and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Dot position performs unexpectedly, Atlanticus 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 Atlanticus Holdings will offset losses from the drop in Atlanticus Holdings' long position.| Green Dot vs. Guidewire Software | Green Dot vs. Evertec | Green Dot vs. Axos Financial | Green Dot vs. Trupanion |
| Atlanticus Holdings vs. Babcock Wilcox Enterprises | Atlanticus Holdings vs. XOMA Corporation | Atlanticus Holdings vs. Brighthouse Financial | Atlanticus Holdings vs. Presidio Property Trust |
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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