Correlation Between Cibc Atlas and At Mid

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

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

Diversification Opportunities for Cibc Atlas and At Mid

0.92

Correlation Coefficient

Cibc Atlas  At Mid

Almost no diversification

The 3 months correlation between Cibc and AWMIX is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Cibc Atlas All and At Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on At Mid Cap and Cibc Atlas 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 Cibc Atlas All are associated (or correlated) with At Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of At Mid Cap has no effect on the direction of Cibc Atlas i.e., Cibc Atlas and At Mid go up and down completely randomly.

Pair Corralation between Cibc Atlas and At Mid

Assuming the 90 days horizon Cibc Atlas is expected to generate 1.33 times less return on investment than At Mid. In addition to that, Cibc Atlas is 1.26 times more volatile than At Mid Cap. It trades about 0.14 of its total potential returns per unit of risk. At Mid Cap is currently generating about 0.23 per unit of volatility. If you would invest  1,973  in At Mid Cap on September 3, 2024 and sell it today you would earn a total of  255.00  from holding At Mid Cap or generate 12.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Cibc Atlas All  vs.  At Mid Cap

Cibc Atlas All

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cibc Atlas All are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Cibc Atlas may actually be approaching a critical reversion point that can send shares even higher in January 2025.

At Mid Cap

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in At Mid Cap are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, At Mid may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Cibc Atlas and At Mid

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

The idea behind Cibc Atlas All and At Mid Cap 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.