Correlation Between Brinks and ATIF Holdings

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

By analyzing existing cross correlation between Brinks Company and ATIF Holdings, you can compare the effects of market volatilities on Brinks and ATIF Holdings 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 Brinks with a short position of ATIF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinks and ATIF Holdings.

Diversification Opportunities for Brinks and ATIF Holdings

0.0

Correlation Coefficient

Brinks  ATIF Holdings

Pay attention - limited upside

The 3 months correlation between Brinks and ATIF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Brinks Company and ATIF Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATIF Holdings and Brinks 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 Brinks Company are associated (or correlated) with ATIF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATIF Holdings has no effect on the direction of Brinks i.e., Brinks and ATIF Holdings go up and down completely randomly.

Pair Corralation between Brinks and ATIF Holdings

If you would invest  9,212  in Brinks Company on December 2, 2024 and sell it today you would earn a total of  192.00  from holding Brinks Company or generate 2.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Brinks Company  vs.  ATIF Holdings

Brinks Company

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brinks Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Brinks is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

ATIF Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATIF Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, ATIF Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Brinks and ATIF Holdings

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

The idea behind Brinks Company and ATIF Holdings 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.