Correlation Between China Lending and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both China 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 China 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 China Lending Corp and Atlanticus Holdings Corp, you can compare the effects of market volatilities on China 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 China Lending with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Lending and Atlanticus Holdings.
Diversification Opportunities for China Lending and Atlanticus Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Atlanticus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China 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 China 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 China 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 China Lending i.e., China Lending and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between China Lending and Atlanticus Holdings
If you would invest 2,248 in Atlanticus Holdings Corp on September 12, 2024 and sell it today you would earn a total of 102.00 from holding Atlanticus Holdings Corp or generate 4.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
China Lending Corp vs. Atlanticus Holdings Corp
Performance |
| Timeline |
| China Lending Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Atlanticus Holdings Corp |
China Lending and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Lending and Atlanticus Holdings
The main advantage of trading using opposite China Lending and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China 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.| China Lending vs. Qudian Inc | China Lending vs. X Financial Class | China Lending vs. FinVolution Group | China Lending vs. Senmiao Technology |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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