Correlation Between Timbercreek Financial and Atlantic Power
Can any of the company-specific risk be diversified away by investing in both Timbercreek Financial and Atlantic Power 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 Timbercreek Financial and Atlantic Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Timbercreek Financial Corp and Atlantic Power, you can compare the effects of market volatilities on Timbercreek Financial and Atlantic Power 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 Timbercreek Financial with a short position of Atlantic Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Timbercreek Financial and Atlantic Power.
Diversification Opportunities for Timbercreek Financial and Atlantic Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Timbercreek and Atlantic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Timbercreek Financial Corp and Atlantic Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Power and Timbercreek 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 Timbercreek Financial Corp are associated (or correlated) with Atlantic Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Power has no effect on the direction of Timbercreek Financial i.e., Timbercreek Financial and Atlantic Power go up and down completely randomly.
Pair Corralation between Timbercreek Financial and Atlantic Power
If you would invest 758.00 in Timbercreek Financial Corp on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Timbercreek Financial Corp or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Timbercreek Financial Corp vs. Atlantic Power
Performance |
| Timeline |
| Timbercreek Financial |
| Atlantic Power |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Timbercreek Financial and Atlantic Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Timbercreek Financial and Atlantic Power
The main advantage of trading using opposite Timbercreek Financial and Atlantic Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Timbercreek Financial position performs unexpectedly, Atlantic Power 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 Atlantic Power will offset losses from the drop in Atlantic Power's long position.| Timbercreek Financial vs. Atrium Mortgage Investment | Timbercreek Financial vs. MCAN Mortgage | Timbercreek Financial vs. Fiera Capital | Timbercreek Financial vs. Firm Capital Mortgage |
| Atlantic Power vs. Timbercreek Financial Corp | Atlantic Power vs. Brookfield Office Properties | Atlantic Power vs. First National Financial | Atlantic Power vs. Advent Wireless |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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