Correlation Between Atrium Mortgage and Computer Modelling

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

Diversification Opportunities for Atrium Mortgage and Computer Modelling

-0.28

Correlation Coefficient

Atrium Mortgage  Computer Modelling

Very good diversification

The 3 months correlation between Atrium and Computer is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Computer Modelling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Modelling 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 Computer Modelling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Modelling has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Computer Modelling go up and down completely randomly.

Pair Corralation between Atrium Mortgage and Computer Modelling

Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.84 times more return on investment than Computer Modelling. However, Atrium Mortgage Investment is 1.18 times less risky than Computer Modelling. It trades about -0.15 of its potential returns per unit of risk. Computer Modelling Group is currently generating about -0.16 per unit of risk. If you would invest  1,132  in Atrium Mortgage Investment on October 8, 2024 and sell it today you would lose (25.00) from holding Atrium Mortgage Investment or give up 2.21% of portfolio value over 90 days.

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

Atrium Mortgage Investment  vs.  Computer Modelling Group

Atrium Mortgage Inve

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Atrium Mortgage Investment are ranked lower than 1 (%) 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.

Computer Modelling

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Computer Modelling Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Atrium Mortgage and Computer Modelling

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

The idea behind Atrium Mortgage Investment and Computer Modelling Group 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.