Correlation Between Highway 50 and Atrium Mortgage
Can any of the company-specific risk be diversified away by investing in both Highway 50 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 Highway 50 and Atrium Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Highway 50 Gold and Atrium Mortgage Investment, you can compare the effects of market volatilities on Highway 50 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 Highway 50 with a short position of Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highway 50 and Atrium Mortgage.
Diversification Opportunities for Highway 50 and Atrium Mortgage
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Highway and Atrium is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Highway 50 Gold 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 Highway 50 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 Highway 50 Gold 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 Highway 50 i.e., Highway 50 and Atrium Mortgage go up and down completely randomly.
Pair Corralation between Highway 50 and Atrium Mortgage
Assuming the 90 days horizon Highway 50 Gold is expected to under-perform the Atrium Mortgage. In addition to that, Highway 50 is 14.47 times more volatile than Atrium Mortgage Investment. It trades about -0.24 of its total potential returns per unit of risk. Atrium Mortgage Investment is currently generating about 0.38 per unit of volatility. If you would invest 1,092 in Atrium Mortgage Investment on September 3, 2024 and sell it today you would earn a total of 44.00 from holding Atrium Mortgage Investment or generate 4.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Highway 50 Gold vs. Atrium Mortgage Investment
Performance |
| Timeline |
| Highway 50 Gold |
| Atrium Mortgage Inve |
Highway 50 and Atrium Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Highway 50 and Atrium Mortgage
The main advantage of trading using opposite Highway 50 and Atrium Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highway 50 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.| Highway 50 vs. Atrium Mortgage Investment | Highway 50 vs. Solid Impact Investments | Highway 50 vs. DRI Healthcare Trust | Highway 50 vs. Rocky Mountain Liquor |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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