Correlation Between Atrium Mortgage and Spotify Technology

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

Diversification Opportunities for Atrium Mortgage and Spotify Technology

0.66

Correlation Coefficient

Atrium Mortgage  Spotify Technology

Poor diversification

The 3 months correlation between Atrium and Spotify is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Spotify Technology SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spotify Technology 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 Spotify Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spotify Technology has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Spotify Technology go up and down completely randomly.

Pair Corralation between Atrium Mortgage and Spotify Technology

Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.37 times more return on investment than Spotify Technology. However, Atrium Mortgage Investment is 2.73 times less risky than Spotify Technology. It trades about 0.15 of its potential returns per unit of risk. Spotify Technology SA is currently generating about 0.02 per unit of risk. If you would invest  775.00  in Atrium Mortgage Investment on May 2, 2025 and sell it today you would earn a total of  74.00  from holding Atrium Mortgage Investment or generate 9.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Atrium Mortgage Investment  vs.  Spotify Technology SA

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 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Atrium Mortgage may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Spotify Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Spotify Technology SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Spotify Technology is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Atrium Mortgage and Spotify Technology

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

The idea behind Atrium Mortgage Investment and Spotify Technology SA 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.