Correlation Between Atrium Mortgage and Caribbean Utilities

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

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

Diversification Opportunities for Atrium Mortgage and Caribbean Utilities

0.18

Correlation Coefficient

Atrium Mortgage  Caribbean Utilities

Average diversification

The 3 months correlation between Atrium and Caribbean is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Caribbean Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caribbean Utilities and Atrium Mortgage 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 Atrium Mortgage Investment are associated (or correlated) with Caribbean Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caribbean Utilities has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Caribbean Utilities go up and down completely randomly.

Pair Corralation between Atrium Mortgage and Caribbean Utilities

Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.66 times more return on investment than Caribbean Utilities. However, Atrium Mortgage Investment is 1.52 times less risky than Caribbean Utilities. It trades about 0.18 of its potential returns per unit of risk. Caribbean Utilities is currently generating about 0.0 per unit of risk. If you would invest  1,076  in Atrium Mortgage Investment on April 23, 2025 and sell it today you would earn a total of  91.00  from holding Atrium Mortgage Investment or generate 8.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Atrium Mortgage Investment  vs.  Caribbean Utilities

Atrium Mortgage Inve

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atrium Mortgage Investment are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Atrium Mortgage may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Caribbean Utilities

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caribbean Utilities has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Caribbean Utilities is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Atrium Mortgage and Caribbean Utilities

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

The idea behind Atrium Mortgage Investment and Caribbean Utilities 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.

Check out your portfolio center.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.