Correlation Between Atlas Corp and Mason Graphite
Can any of the company-specific risk be diversified away by investing in both Atlas Corp and Mason Graphite 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 Atlas Corp and Mason Graphite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Corp and Mason Graphite, you can compare the effects of market volatilities on Atlas Corp and Mason Graphite 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 Atlas Corp with a short position of Mason Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Corp and Mason Graphite.
Diversification Opportunities for Atlas Corp and Mason Graphite
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlas and Mason is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Corp and Mason Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Graphite and Atlas Corp 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 Atlas Corp are associated (or correlated) with Mason Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Graphite has no effect on the direction of Atlas Corp i.e., Atlas Corp and Mason Graphite go up and down completely randomly.
Pair Corralation between Atlas Corp and Mason Graphite
Assuming the 90 days horizon Atlas Corp is expected to generate 0.09 times more return on investment than Mason Graphite. However, Atlas Corp is 10.94 times less risky than Mason Graphite. It trades about 0.05 of its potential returns per unit of risk. Mason Graphite is currently generating about -0.05 per unit of risk. If you would invest 2,333 in Atlas Corp on January 30, 2024 and sell it today you would earn a total of 87.00 from holding Atlas Corp or generate 3.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.32% |
Values | Daily Returns |
Atlas Corp vs. Mason Graphite
Performance |
Timeline |
Atlas Corp |
Mason Graphite |
Atlas Corp and Mason Graphite Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atlas Corp and Mason Graphite
The main advantage of trading using opposite Atlas Corp and Mason Graphite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Corp position performs unexpectedly, Mason Graphite 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 Mason Graphite will offset losses from the drop in Mason Graphite's long position.Atlas Corp vs. Harrow Health 8625 | Atlas Corp vs. BWSN | Atlas Corp vs. B Riley Financial | Atlas Corp vs. B Riley Financial |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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