Correlation Between Atrium Mortgage and MTY Food

Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and MTY Food 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 MTY Food 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 MTY Food Group, you can compare the effects of market volatilities on Atrium Mortgage and MTY Food 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 MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and MTY Food.

Diversification Opportunities for Atrium Mortgage and MTY Food

-0.72

Correlation Coefficient

Atrium Mortgage  MTY Food

Pay attention - limited upside

The 3 months correlation between Atrium and MTY is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group 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 MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and MTY Food go up and down completely randomly.

Pair Corralation between Atrium Mortgage and MTY Food

Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.37 times more return on investment than MTY Food. However, Atrium Mortgage Investment is 2.71 times less risky than MTY Food. It trades about 0.19 of its potential returns per unit of risk. MTY Food Group is currently generating about -0.11 per unit of risk. If you would invest  1,070  in Atrium Mortgage Investment on May 10, 2025 and sell it today you would earn a total of  103.00  from holding Atrium Mortgage Investment or generate 9.63% return on investment over 90 days.

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

Atrium Mortgage Investment  vs.  MTY Food Group

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 15 (%) 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 September 2025.

MTY Food Group

Risk-Adjusted Performance

Weakest

Over the last 90 days MTY Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Atrium Mortgage and MTY Food

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

The idea behind Atrium Mortgage Investment and MTY Food Group 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.