Correlation Between IFAN Financial and Atlas Technology
Can any of the company-specific risk be diversified away by investing in both IFAN Financial and Atlas Technology 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 IFAN Financial and Atlas Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IFAN Financial and Atlas Technology Grp, you can compare the effects of market volatilities on IFAN Financial and Atlas Technology 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 IFAN Financial with a short position of Atlas Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of IFAN Financial and Atlas Technology.
Diversification Opportunities for IFAN Financial and Atlas Technology
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IFAN and Atlas is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding IFAN Financial and Atlas Technology Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Technology Grp and IFAN Financial 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 IFAN Financial are associated (or correlated) with Atlas Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Technology Grp has no effect on the direction of IFAN Financial i.e., IFAN Financial and Atlas Technology go up and down completely randomly.
Pair Corralation between IFAN Financial and Atlas Technology
Given the investment horizon of 90 days IFAN Financial is expected to generate 1.45 times less return on investment than Atlas Technology. But when comparing it to its historical volatility, IFAN Financial is 1.29 times less risky than Atlas Technology. It trades about 0.19 of its potential returns per unit of risk. Atlas Technology Grp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Atlas Technology Grp on August 29, 2024 and sell it today you would earn a total of 0.01 from holding Atlas Technology Grp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
IFAN Financial vs. Atlas Technology Grp
Performance |
| Timeline |
| IFAN Financial |
| Atlas Technology Grp |
IFAN Financial and Atlas Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IFAN Financial and Atlas Technology
The main advantage of trading using opposite IFAN Financial and Atlas Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IFAN Financial position performs unexpectedly, Atlas Technology 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 Technology will offset losses from the drop in Atlas Technology's long position.| IFAN Financial vs. First Colombia Gold | IFAN Financial vs. Eline Entertainment Group | IFAN Financial vs. All American Gld | IFAN Financial vs. Green Leaf Innovations |
| Atlas Technology vs. Green Planet Bio | Atlas Technology vs. Azure Holding Group | Atlas Technology vs. Four Leaf Acquisition | Atlas Technology vs. Opus Magnum Ameris |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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