Correlation Between Signature Resources and Atrium Mortgage
Can any of the company-specific risk be diversified away by investing in both Signature Resources 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 Signature Resources and Atrium Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signature Resources and Atrium Mortgage Investment, you can compare the effects of market volatilities on Signature Resources 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 Signature Resources with a short position of Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signature Resources and Atrium Mortgage.
Diversification Opportunities for Signature Resources and Atrium Mortgage
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Signature and Atrium is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Signature Resources 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 Signature Resources 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 Signature Resources 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 Signature Resources i.e., Signature Resources and Atrium Mortgage go up and down completely randomly.
Pair Corralation between Signature Resources and Atrium Mortgage
Assuming the 90 days horizon Signature Resources is expected to generate 11.98 times more return on investment than Atrium Mortgage. However, Signature Resources is 11.98 times more volatile than Atrium Mortgage Investment. It trades about 0.2 of its potential returns per unit of risk. Atrium Mortgage Investment is currently generating about -0.03 per unit of risk. If you would invest 2.50 in Signature Resources on October 26, 2024 and sell it today you would earn a total of 1.00 from holding Signature Resources or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Signature Resources vs. Atrium Mortgage Investment
Performance |
| Timeline |
| Signature Resources |
| Atrium Mortgage Inve |
Signature Resources and Atrium Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signature Resources and Atrium Mortgage
The main advantage of trading using opposite Signature Resources and Atrium Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signature Resources 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.| Signature Resources vs. Atrium Mortgage Investment | Signature Resources vs. Canlan Ice Sports | Signature Resources vs. Titanium Transportation Group | Signature Resources vs. Postmedia Network Canada |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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