Correlation Between Chicken Soup and Atlanticus Holdings

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

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

Diversification Opportunities for Chicken Soup and Atlanticus Holdings

-0.15

Correlation Coefficient

Chicken Soup  Atlanticus Holdings

Good diversification

The 3 months correlation between Chicken and Atlanticus is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Chicken Soup For and Atlanticus Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings Corp and Chicken Soup 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 Chicken Soup For are associated (or correlated) with Atlanticus Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanticus Holdings Corp has no effect on the direction of Chicken Soup i.e., Chicken Soup and Atlanticus Holdings go up and down completely randomly.

Pair Corralation between Chicken Soup and Atlanticus Holdings

If you would invest  2,253  in Atlanticus Holdings Corp on September 3, 2024 and sell it today you would earn a total of  147.00  from holding Atlanticus Holdings Corp or generate 6.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Chicken Soup For  vs.  Atlanticus Holdings Corp

Chicken Soup For

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Chicken Soup For has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Chicken Soup is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Atlanticus Holdings Corp

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atlanticus Holdings Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, Atlanticus Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Chicken Soup and Atlanticus Holdings

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

The idea behind Chicken Soup For and Atlanticus Holdings Corp 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.