Correlation Between Spire Global and Atrium Mortgage
Can any of the company-specific risk be diversified away by investing in both Spire Global 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 Spire Global and Atrium Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spire Global and Atrium Mortgage Investment, you can compare the effects of market volatilities on Spire Global 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 Spire Global with a short position of Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spire Global and Atrium Mortgage.
Diversification Opportunities for Spire Global and Atrium Mortgage
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Spire and Atrium is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Spire Global 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 Spire Global 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 Spire Global 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 Spire Global i.e., Spire Global and Atrium Mortgage go up and down completely randomly.
Pair Corralation between Spire Global and Atrium Mortgage
Given the investment horizon of 90 days Spire Global is expected to generate 4.41 times more return on investment than Atrium Mortgage. However, Spire Global is 4.41 times more volatile than Atrium Mortgage Investment. It trades about 0.37 of its potential returns per unit of risk. Atrium Mortgage Investment is currently generating about -0.08 per unit of risk. If you would invest 1,091 in Spire Global on September 4, 2024 and sell it today you would earn a total of 466.00 from holding Spire Global or generate 42.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Spire Global vs. Atrium Mortgage Investment
Performance |
| Timeline |
| Spire Global |
| Atrium Mortgage Inve |
Spire Global and Atrium Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spire Global and Atrium Mortgage
The main advantage of trading using opposite Spire Global and Atrium Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spire Global 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.| Spire Global vs. Lichen China Limited | Spire Global vs. Unifirst | Spire Global vs. First Advantage Corp | Spire Global vs. Performant Financial |
| Atrium Mortgage vs. Western Asset Global | Atrium Mortgage vs. Invesco Trust For | Atrium Mortgage vs. Logan Ridge Finance | Atrium Mortgage vs. Invesco Advantage MIT |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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