Correlation Between Noble Financials and Atlantis
Can any of the company-specific risk be diversified away by investing in both Noble Financials and Atlantis 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 Noble Financials and Atlantis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noble Financials SA and Atlantis SA, you can compare the effects of market volatilities on Noble Financials and Atlantis 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 Noble Financials with a short position of Atlantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Financials and Atlantis.
Diversification Opportunities for Noble Financials and Atlantis
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Noble and Atlantis is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Noble Financials SA and Atlantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis SA and Noble Financials 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 Noble Financials SA are associated (or correlated) with Atlantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis SA has no effect on the direction of Noble Financials i.e., Noble Financials and Atlantis go up and down completely randomly.
Pair Corralation between Noble Financials and Atlantis
Assuming the 90 days trading horizon Noble Financials SA is expected to under-perform the Atlantis. But the stock apears to be less risky and, when comparing its historical volatility, Noble Financials SA is 2.77 times less risky than Atlantis. The stock trades about -0.13 of its potential returns per unit of risk. The Atlantis SA is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Atlantis SA on October 11, 2024 and sell it today you would earn a total of 9.00 from holding Atlantis SA or generate 81.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Noble Financials SA vs. Atlantis SA
Performance |
| Timeline |
| Noble Financials |
| Atlantis SA |
Noble Financials and Atlantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Financials and Atlantis
The main advantage of trading using opposite Noble Financials and Atlantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Financials position performs unexpectedly, Atlantis 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 Atlantis will offset losses from the drop in Atlantis' long position.| Noble Financials vs. Creotech Instruments SA | Noble Financials vs. SOFTWARE MANSION SPOLKA | Noble Financials vs. Monnari Trade SA | Noble Financials vs. CI Games SA |
| Atlantis vs. Echo Investment SA | Atlantis vs. GreenX Metals | Atlantis vs. Ultimate Games SA | Atlantis vs. Kool2play SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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