Correlation Between Atrium Mortgage and InterRent Real
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and InterRent Real 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 InterRent Real 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 InterRent Real Estate, you can compare the effects of market volatilities on Atrium Mortgage and InterRent Real 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 InterRent Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and InterRent Real.
Diversification Opportunities for Atrium Mortgage and InterRent Real
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Atrium and InterRent is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and InterRent Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterRent Real Estate 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 InterRent Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterRent Real Estate has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and InterRent Real go up and down completely randomly.
Pair Corralation between Atrium Mortgage and InterRent Real
Assuming the 90 days horizon Atrium Mortgage is expected to generate 2.51 times less return on investment than InterRent Real. But when comparing it to its historical volatility, Atrium Mortgage Investment is 2.8 times less risky than InterRent Real. It trades about 0.21 of its potential returns per unit of risk. InterRent Real Estate is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,051 in InterRent Real Estate on April 21, 2025 and sell it today you would earn a total of 282.00 from holding InterRent Real Estate or generate 26.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Atrium Mortgage Investment vs. InterRent Real Estate
Performance |
Timeline |
Atrium Mortgage Inve |
InterRent Real Estate |
Atrium Mortgage and InterRent Real Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atrium Mortgage and InterRent Real
The main advantage of trading using opposite Atrium Mortgage and InterRent Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, InterRent Real 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 InterRent Real will offset losses from the drop in InterRent Real's long position.Atrium Mortgage vs. Timbercreek Financial Corp | Atrium Mortgage vs. Firm Capital Mortgage | Atrium Mortgage vs. MCAN Mortgage | Atrium Mortgage vs. First National Financial |
InterRent Real vs. Killam Apartment Real | InterRent Real vs. Canadian Apartment Properties | InterRent Real vs. Granite Real Estate | InterRent Real vs. Boardwalk Real Estate |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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