Correlation Between Atrium Mortgage and Aya Gold

Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Aya Gold 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 Atrium Mortgage and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atrium Mortgage Investment and Aya Gold Silver, you can compare the effects of market volatilities on Atrium Mortgage and Aya Gold 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 Atrium Mortgage with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Aya Gold.

Diversification Opportunities for Atrium Mortgage and Aya Gold

-0.31

Correlation Coefficient

Atrium Mortgage  Aya Gold

Very good diversification

The 3 months correlation between Atrium and Aya is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver and Atrium Mortgage 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 Atrium Mortgage Investment are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Aya Gold go up and down completely randomly.

Pair Corralation between Atrium Mortgage and Aya Gold

Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.15 times more return on investment than Aya Gold. However, Atrium Mortgage Investment is 6.85 times less risky than Aya Gold. It trades about 0.04 of its potential returns per unit of risk. Aya Gold Silver is currently generating about 0.01 per unit of risk. If you would invest  1,121  in Atrium Mortgage Investment on September 3, 2024 and sell it today you would earn a total of  15.00  from holding Atrium Mortgage Investment or generate 1.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Atrium Mortgage Investment  vs.  Aya Gold Silver

Atrium Mortgage Inve

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atrium Mortgage Investment are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Atrium Mortgage is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Aya Gold Silver

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aya Gold Silver has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Aya Gold is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Atrium Mortgage and Aya Gold

The main advantage of trading using opposite Atrium Mortgage and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.

The idea behind Atrium Mortgage Investment and Aya Gold Silver pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.