Correlation Between Open Lending and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both Open Lending 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 Open Lending and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Open Lending Corp and Atlanticus Holdings Corp, you can compare the effects of market volatilities on Open Lending 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 Open Lending with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Open Lending and Atlanticus Holdings.
Diversification Opportunities for Open Lending and Atlanticus Holdings
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Open and Atlanticus is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Open Lending Corp 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 Open Lending 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 Open Lending Corp 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 Open Lending i.e., Open Lending and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between Open Lending and Atlanticus Holdings
Given the investment horizon of 90 days Open Lending Corp is expected to under-perform the Atlanticus Holdings. In addition to that, Open Lending is 3.07 times more volatile than Atlanticus Holdings Corp. It trades about -0.02 of its total potential returns per unit of risk. Atlanticus Holdings Corp is currently generating about 0.05 per unit of volatility. If you would invest 2,137 in Atlanticus Holdings Corp on August 25, 2024 and sell it today you would earn a total of 240.00 from holding Atlanticus Holdings Corp or generate 11.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Open Lending Corp vs. Atlanticus Holdings Corp
Performance |
| Timeline |
| Open Lending Corp |
| Atlanticus Holdings Corp |
Open Lending and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Open Lending and Atlanticus Holdings
The main advantage of trading using opposite Open Lending and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Open Lending 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.| Open Lending vs. EZCORP Inc | Open Lending vs. Orix Corp Ads | Open Lending vs. SLM Corp | Open Lending vs. Navient Corp |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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