Correlation Between OSB GROUP and ATRIUM MORTGAGE
Can any of the company-specific risk be diversified away by investing in both OSB GROUP and ATRIUM MORTGAGE 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 OSB GROUP and ATRIUM MORTGAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSB GROUP PLC and ATRIUM MORTGAGE INVESTM, you can compare the effects of market volatilities on OSB GROUP and ATRIUM MORTGAGE 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 OSB GROUP with a short position of ATRIUM MORTGAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSB GROUP and ATRIUM MORTGAGE.
Diversification Opportunities for OSB GROUP and ATRIUM MORTGAGE
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OSB and ATRIUM is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding OSB GROUP PLC and ATRIUM MORTGAGE INVESTM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRIUM MORTGAGE INVESTM and OSB GROUP 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 OSB GROUP PLC are associated (or correlated) with ATRIUM MORTGAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRIUM MORTGAGE INVESTM has no effect on the direction of OSB GROUP i.e., OSB GROUP and ATRIUM MORTGAGE go up and down completely randomly.
Pair Corralation between OSB GROUP and ATRIUM MORTGAGE
Assuming the 90 days horizon OSB GROUP PLC is expected to generate 0.97 times more return on investment than ATRIUM MORTGAGE. However, OSB GROUP PLC is 1.03 times less risky than ATRIUM MORTGAGE. It trades about 0.03 of its potential returns per unit of risk. ATRIUM MORTGAGE INVESTM is currently generating about -0.01 per unit of risk. If you would invest 452.00 in OSB GROUP PLC on September 25, 2024 and sell it today you would earn a total of 14.00 from holding OSB GROUP PLC or generate 3.1% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OSB GROUP PLC vs. ATRIUM MORTGAGE INVESTM
Performance |
Timeline |
OSB GROUP PLC |
ATRIUM MORTGAGE INVESTM |
OSB GROUP and ATRIUM MORTGAGE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OSB GROUP and ATRIUM MORTGAGE
The main advantage of trading using opposite OSB GROUP and ATRIUM MORTGAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSB GROUP position performs unexpectedly, ATRIUM MORTGAGE 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 ATRIUM MORTGAGE will offset losses from the drop in ATRIUM MORTGAGE's long position.OSB GROUP vs. Mr Cooper Group | OSB GROUP vs. FIRST NATIONAL FIN | OSB GROUP vs. Deutsche Pfandbriefbank AG | OSB GROUP vs. ELLINGTON FINL INC |
ATRIUM MORTGAGE vs. Mr Cooper Group | ATRIUM MORTGAGE vs. OSB GROUP PLC | ATRIUM MORTGAGE vs. FIRST NATIONAL FIN | ATRIUM MORTGAGE vs. Deutsche Pfandbriefbank AG |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |