Correlation Between Interface and Atlas Engineered
Can any of the company-specific risk be diversified away by investing in both Interface and Atlas Engineered 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 Interface and Atlas Engineered into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interface and Atlas Engineered Products, you can compare the effects of market volatilities on Interface and Atlas Engineered 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 Interface with a short position of Atlas Engineered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interface and Atlas Engineered.
Diversification Opportunities for Interface and Atlas Engineered
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Interface and Atlas is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Interface and Atlas Engineered Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Engineered Products and Interface 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 Interface are associated (or correlated) with Atlas Engineered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Engineered Products has no effect on the direction of Interface i.e., Interface and Atlas Engineered go up and down completely randomly.
Pair Corralation between Interface and Atlas Engineered
Given the investment horizon of 90 days Interface is expected to generate 0.62 times more return on investment than Atlas Engineered. However, Interface is 1.63 times less risky than Atlas Engineered. It trades about 0.08 of its potential returns per unit of risk. Atlas Engineered Products is currently generating about -0.22 per unit of risk. If you would invest 2,414 in Interface on November 5, 2024 and sell it today you would earn a total of 62.00 from holding Interface or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interface vs. Atlas Engineered Products
Performance |
| Timeline |
| Interface |
| Atlas Engineered Products |
Interface and Atlas Engineered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interface and Atlas Engineered
The main advantage of trading using opposite Interface and Atlas Engineered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interface position performs unexpectedly, Atlas Engineered 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 Atlas Engineered will offset losses from the drop in Atlas Engineered's long position.| Interface vs. Quanex Building Products | Interface vs. Janus International Group | Interface vs. Apogee Enterprises | Interface vs. Gibraltar Industries |
| Atlas Engineered vs. Vinci SA ADR | Atlas Engineered vs. VINCI SA | Atlas Engineered vs. Quanta Services | Atlas Engineered vs. Larsen Toubro Limited |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |