Correlation Between Atrium Mortgage and AGEDB Technology

Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and AGEDB Technology 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 AGEDB Technology 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 AGEDB Technology, you can compare the effects of market volatilities on Atrium Mortgage and AGEDB Technology 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 AGEDB Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and AGEDB Technology.

Diversification Opportunities for Atrium Mortgage and AGEDB Technology

0.19

Correlation Coefficient

Atrium Mortgage  AGEDB Technology

Average diversification

The 3 months correlation between Atrium and AGEDB is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and AGEDB Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGEDB Technology 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 AGEDB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGEDB Technology has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and AGEDB Technology go up and down completely randomly.

Pair Corralation between Atrium Mortgage and AGEDB Technology

Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.09 times more return on investment than AGEDB Technology. However, Atrium Mortgage Investment is 11.34 times less risky than AGEDB Technology. It trades about 0.01 of its potential returns per unit of risk. AGEDB Technology is currently generating about -0.1 per unit of risk. If you would invest  1,076  in Atrium Mortgage Investment on December 21, 2024 and sell it today you would earn a total of  1.00  from holding Atrium Mortgage Investment or generate 0.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Atrium Mortgage Investment  vs.  AGEDB Technology

Atrium Mortgage Inve

Risk-Adjusted Performance

Weak

Over the last 90 days Atrium Mortgage Investment has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

AGEDB Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGEDB Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Atrium Mortgage and AGEDB Technology

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

The idea behind Atrium Mortgage Investment and AGEDB Technology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.