Correlation Between Atc Venture and American Defense

Can any of the company-specific risk be diversified away by investing in both Atc Venture and American Defense 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 Atc Venture and American Defense into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atc Venture Grp and American Defense Systems, you can compare the effects of market volatilities on Atc Venture and American Defense 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 Atc Venture with a short position of American Defense. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atc Venture and American Defense.

Diversification Opportunities for Atc Venture and American Defense

0.0

Correlation Coefficient

Atc Venture  American Defense

Pay attention - limited upside

The 3 months correlation between Atc and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atc Venture Grp and American Defense Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Defense Systems and Atc Venture 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 Atc Venture Grp are associated (or correlated) with American Defense. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Defense Systems has no effect on the direction of Atc Venture i.e., Atc Venture and American Defense go up and down completely randomly.

Pair Corralation between Atc Venture and American Defense

If you would invest (100.00) in American Defense Systems on May 19, 2025 and sell it today you would earn a total of  100.00  from holding American Defense Systems or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Atc Venture Grp  vs.  American Defense Systems

Atc Venture Grp

Risk-Adjusted Performance

Weakest

Over the last 90 days Atc Venture Grp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Atc Venture is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

American Defense Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days American Defense Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, American Defense is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Atc Venture and American Defense

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

The idea behind Atc Venture Grp and American Defense Systems 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.