Correlation Between Deluxe and ATIF Old

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

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

Diversification Opportunities for Deluxe and ATIF Old

0.0

Correlation Coefficient

Deluxe  ATIF Old

Pay attention - limited upside

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

Pair Corralation between Deluxe and ATIF Old

If you would invest (100.00) in ATIF Old on December 24, 2024 and sell it today you would earn a total of  100.00  from holding ATIF Old or generate -100.0% return on investment over 90 days.

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

Deluxe  vs.  ATIF Old

Deluxe

Risk-Adjusted Performance

Very Weak

Over the last 90 days Deluxe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

ATIF Old

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Deluxe and ATIF Old

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

The idea behind Deluxe and ATIF Old 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.