Correlation Between Fathom Holdings and Advanced Oxygen

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

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

Diversification Opportunities for Fathom Holdings and Advanced Oxygen

0.12

Correlation Coefficient

Fathom Holdings  Advanced Oxygen

Average diversification

The 3 months correlation between Fathom and Advanced is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fathom Holdings and Advanced Oxygen Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Oxygen Tech and Fathom Holdings 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 Fathom Holdings are associated (or correlated) with Advanced Oxygen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Oxygen Tech has no effect on the direction of Fathom Holdings i.e., Fathom Holdings and Advanced Oxygen go up and down completely randomly.

Pair Corralation between Fathom Holdings and Advanced Oxygen

If you would invest  6.40  in Advanced Oxygen Technologies on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Advanced Oxygen Technologies or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Fathom Holdings  vs.  Advanced Oxygen Technologies

Fathom Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fathom Holdings 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 technical indicators remain very healthy which may send shares a bit higher in February 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Advanced Oxygen Tech

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Oxygen Technologies are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Advanced Oxygen showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Fathom Holdings and Advanced Oxygen

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

The idea behind Fathom Holdings and Advanced Oxygen Technologies 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..