Correlation Between Atlas For and Mohandes Insurance

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

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

Diversification Opportunities for Atlas For and Mohandes Insurance

0.27

Correlation Coefficient

Atlas For  Mohandes Insurance

Modest diversification

The 3 months correlation between Atlas and Mohandes is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Atlas For Investment and Mohandes Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mohandes Insurance and Atlas For 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 Atlas For Investment are associated (or correlated) with Mohandes Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mohandes Insurance has no effect on the direction of Atlas For i.e., Atlas For and Mohandes Insurance go up and down completely randomly.

Pair Corralation between Atlas For and Mohandes Insurance

Assuming the 90 days trading horizon Atlas For Investment is expected to generate 1.3 times more return on investment than Mohandes Insurance. However, Atlas For is 1.3 times more volatile than Mohandes Insurance. It trades about 0.29 of its potential returns per unit of risk. Mohandes Insurance is currently generating about 0.02 per unit of risk. If you would invest  103.00  in Atlas For Investment on December 24, 2024 and sell it today you would earn a total of  67.00  from holding Atlas For Investment or generate 65.05% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.04%
Values	Daily Returns

Atlas For Investment  vs.  Mohandes Insurance

Atlas For Investment

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Atlas For Investment are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Atlas For reported solid returns over the last few months and may actually be approaching a breakup point.

Mohandes Insurance

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mohandes Insurance are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Mohandes Insurance is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Atlas For and Mohandes Insurance

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

The idea behind Atlas For Investment and Mohandes Insurance 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.

Check out your portfolio center.

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.