Correlation Between Wajax and ATS P
Can any of the company-specific risk be diversified away by investing in both Wajax and ATS P 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 Wajax and ATS P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wajax and ATS P, you can compare the effects of market volatilities on Wajax and ATS P 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 Wajax with a short position of ATS P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wajax and ATS P.
Diversification Opportunities for Wajax and ATS P
Good diversification
The 3 months correlation between Wajax and ATS is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Wajax and ATS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATS P and Wajax 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 Wajax are associated (or correlated) with ATS P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATS P has no effect on the direction of Wajax i.e., Wajax and ATS P go up and down completely randomly.
Pair Corralation between Wajax and ATS P
Assuming the 90 days trading horizon Wajax is expected to under-perform the ATS P. In addition to that, Wajax is 1.5 times more volatile than ATS P. It trades about -0.02 of its total potential returns per unit of risk. ATS P is currently generating about 0.17 per unit of volatility. If you would invest 4,173 in ATS P on September 1, 2024 and sell it today you would earn a total of 413.00 from holding ATS P or generate 9.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wajax vs. ATS P
Performance |
| Timeline |
| Wajax |
| ATS P |
Wajax and ATS P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wajax and ATS P
The main advantage of trading using opposite Wajax and ATS P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wajax position performs unexpectedly, ATS P 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 ATS P will offset losses from the drop in ATS P's long position.| Wajax vs. Russel Metals | Wajax vs. Bird Construction | Wajax vs. Finning International | Wajax vs. Mullen Group |
| ATS P vs. Trisura Group | ATS P vs. Brookfield | ATS P vs. Storage Vault Canada | ATS P vs. Brookfield Asset Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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