Correlation Between CVF Technologies and Atlas Corp

Can any of the company-specific risk be diversified away by investing in both CVF Technologies and Atlas Corp 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 CVF Technologies and Atlas Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CVF Technologies and Atlas Corp, you can compare the effects of market volatilities on CVF Technologies and Atlas Corp 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 CVF Technologies with a short position of Atlas Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVF Technologies and Atlas Corp.

Diversification Opportunities for CVF Technologies and Atlas Corp

-0.51

Correlation Coefficient

CVF Technologies  Atlas Corp

Excellent diversification

The 3 months correlation between CVF and Atlas is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding CVF Technologies and Atlas Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Corp and CVF Technologies 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 CVF Technologies are associated (or correlated) with Atlas Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Corp has no effect on the direction of CVF Technologies i.e., CVF Technologies and Atlas Corp go up and down completely randomly.

Pair Corralation between CVF Technologies and Atlas Corp

If you would invest  2,417  in Atlas Corp on August 30, 2024 and sell it today you would earn a total of  73.00  from holding Atlas Corp or generate 3.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

CVF Technologies  vs.  Atlas Corp

CVF Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CVF Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CVF Technologies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Atlas Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atlas Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Atlas Corp is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with CVF Technologies and Atlas Corp

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

The idea behind CVF Technologies and Atlas Corp 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.