Correlation Between XOMA and Atlanticus Holdings
Can any of the company-specific risk be diversified away by investing in both XOMA 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 XOMA and Atlanticus Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XOMA Corporation and Atlanticus Holdings Corp, you can compare the effects of market volatilities on XOMA 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 XOMA with a short position of Atlanticus Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of XOMA and Atlanticus Holdings.
Diversification Opportunities for XOMA and Atlanticus Holdings
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XOMA and Atlanticus is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding XOMA Corp. and Atlanticus Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings Corp and XOMA 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 XOMA Corporation 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 Corp has no effect on the direction of XOMA i.e., XOMA and Atlanticus Holdings go up and down completely randomly.
Pair Corralation between XOMA and Atlanticus Holdings
Assuming the 90 days horizon XOMA Corporation is expected to under-perform the Atlanticus Holdings. But the preferred stock apears to be less risky and, when comparing its historical volatility, XOMA Corporation is 4.38 times less risky than Atlanticus Holdings. The preferred stock trades about -0.39 of its potential returns per unit of risk. The Atlanticus Holdings Corp is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,287 in Atlanticus Holdings Corp on August 27, 2024 and sell it today you would earn a total of 98.00 from holding Atlanticus Holdings Corp or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XOMA Corp. vs. Atlanticus Holdings Corp
Performance |
| Timeline |
| XOMA |
| Atlanticus Holdings Corp |
XOMA and Atlanticus Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XOMA and Atlanticus Holdings
The main advantage of trading using opposite XOMA and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XOMA 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.| XOMA vs. Harrow Health 8625 | XOMA vs. SiriusPoint | XOMA vs. New York Mortgage | XOMA vs. Sachem Capital Corp |
| Atlanticus Holdings vs. Citizens Financial Group | Atlanticus Holdings vs. Wells Fargo | Atlanticus Holdings vs. Equitable Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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