Correlation Between TRINL and Atlanticus Holdings

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

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

Diversification Opportunities for TRINL and Atlanticus Holdings

0.0

Correlation Coefficient

TRINL  Atlanticus Holdings

Pay attention - limited upside

The 3 months correlation between TRINL and Atlanticus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TRINL and Atlanticus Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanticus Holdings and TRINL 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 TRINL 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 has no effect on the direction of TRINL i.e., TRINL and Atlanticus Holdings go up and down completely randomly.

Pair Corralation between TRINL and Atlanticus Holdings

If you would invest  2,311  in Atlanticus Holdings on December 29, 2024 and sell it today you would earn a total of  104.00  from holding Atlanticus Holdings or generate 4.5% return on investment over 90 days.

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

TRINL  vs.  Atlanticus Holdings

TRINL

Risk-Adjusted Performance

Very Weak

Over the last 90 days TRINL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, TRINL is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Atlanticus Holdings

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Atlanticus Holdings are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent fundamental indicators, Atlanticus Holdings is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with TRINL and Atlanticus Holdings

The main advantage of trading using opposite TRINL and Atlanticus Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRINL 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 TRINL and Atlanticus 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.