Correlation Between Atrium Mortgage and Storage Vault

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

Diversification Opportunities for Atrium Mortgage and Storage Vault

-0.05

Correlation Coefficient

Atrium Mortgage  Storage Vault

Good diversification

The 3 months correlation between Atrium and Storage is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Storage Vault Canada in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storage Vault Canada 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 Storage Vault. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storage Vault Canada has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Storage Vault go up and down completely randomly.

Pair Corralation between Atrium Mortgage and Storage Vault

Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.57 times more return on investment than Storage Vault. However, Atrium Mortgage Investment is 1.74 times less risky than Storage Vault. It trades about 0.04 of its potential returns per unit of risk. Storage Vault Canada is currently generating about -0.05 per unit of risk. If you would invest  937.00  in Atrium Mortgage Investment on October 3, 2024 and sell it today you would earn a total of  154.00  from holding Atrium Mortgage Investment or generate 16.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.79%
Values	Daily Returns

Atrium Mortgage Investment  vs.  Storage Vault Canada

Atrium Mortgage Inve

Risk-Adjusted Performance

0 of 100

Very 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.

Storage Vault Canada

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Storage Vault Canada has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Atrium Mortgage and Storage Vault

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

The idea behind Atrium Mortgage Investment and Storage Vault Canada 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.