Correlation Between Atrium Mortgage and TMX Group

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

Diversification Opportunities for Atrium Mortgage and TMX Group

0.68

Correlation Coefficient

Atrium Mortgage  TMX Group

Poor diversification

The 3 months correlation between Atrium and TMX is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and TMX Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMX Group Limited 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 TMX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMX Group Limited has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and TMX Group go up and down completely randomly.

Pair Corralation between Atrium Mortgage and TMX Group

Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.61 times more return on investment than TMX Group. However, Atrium Mortgage Investment is 1.63 times less risky than TMX Group. It trades about 0.18 of its potential returns per unit of risk. TMX Group Limited is currently generating about 0.09 per unit of risk. If you would invest  1,078  in Atrium Mortgage Investment on May 13, 2025 and sell it today you would earn a total of  97.00  from holding Atrium Mortgage Investment or generate 9.0% return on investment over 90 days.

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

Atrium Mortgage Investment  vs.  TMX Group Limited

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 September 2025.

TMX Group Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in TMX Group Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, TMX Group may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Atrium Mortgage and TMX Group

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

The idea behind Atrium Mortgage Investment and TMX Group Limited 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.