Correlation Between TRINL and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both TRINL 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 TRINL and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRINL and Atlanticus Holdings, you can compare the effects of market volatilities on TRINL 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 TRINL with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRINL and Atlanticus Holdings.
Diversification Opportunities for TRINL and Atlanticus Holdings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TRINL and Atlanticus is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding TRINL and Atlanticus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings and TRINL 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 TRINL 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 has no effect on the direction of TRINL i.e., TRINL and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between TRINL and Atlanticus Holdings
Assuming the 90 days horizon TRINL is expected to under-perform the Atlanticus Holdings. But the stock apears to be less risky and, when comparing its historical volatility, TRINL is 1.81 times less risky than Atlanticus Holdings. The stock trades about -0.09 of its potential returns per unit of risk. The Atlanticus Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,355 in Atlanticus Holdings on September 1, 2024 and sell it today you would earn a total of 52.00 from holding Atlanticus Holdings or generate 2.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRINL vs. Atlanticus Holdings
Performance |
| Timeline |
| TRINL |
| Atlanticus Holdings |
TRINL and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRINL and Atlanticus Holdings
The main advantage of trading using opposite TRINL and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRINL 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.| TRINL vs. Atlanticus Holdings | TRINL vs. Great Elm Capital | TRINL vs. Aquagold International | TRINL vs. Thrivent High Yield |
| Atlanticus Holdings vs. B Riley Financial | Atlanticus Holdings vs. Atlanticus Holdings Corp | Atlanticus Holdings vs. Atlas Corp | Atlanticus Holdings vs. Harrow Health 8625 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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