Correlation Between Atlanticus Holdings and Value Line

Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings and Value Line 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 Atlanticus Holdings and Value Line into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atlanticus Holdings and Value Line, you can compare the effects of market volatilities on Atlanticus Holdings and Value Line 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 Atlanticus Holdings with a short position of Value Line. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and Value Line.

Diversification Opportunities for Atlanticus Holdings and Value Line

-0.2

Correlation Coefficient

Atlanticus Holdings  Value Line

Good diversification

The 3 months correlation between Atlanticus and Value is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings and Value Line in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Line and Atlanticus Holdings 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 Atlanticus Holdings are associated (or correlated) with Value Line. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Line has no effect on the direction of Atlanticus Holdings i.e., Atlanticus Holdings and Value Line go up and down completely randomly.

Pair Corralation between Atlanticus Holdings and Value Line

Given the investment horizon of 90 days Atlanticus Holdings is expected to generate 1.8 times more return on investment than Value Line. However, Atlanticus Holdings is 1.8 times more volatile than Value Line. It trades about 0.1 of its potential returns per unit of risk. Value Line is currently generating about 0.01 per unit of risk. If you would invest  4,890  in Atlanticus Holdings on July 29, 2025 and sell it today you would earn a total of  992.00  from holding Atlanticus Holdings or generate 20.29% return on investment over 90 days.

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

Atlanticus Holdings  vs.  Value Line

Atlanticus Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Atlanticus Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, Atlanticus Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.

Value Line

Risk-Adjusted Performance

Weak

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

Pair Trading with Atlanticus Holdings and Value Line

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

The idea behind Atlanticus Holdings and Value Line 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.