Correlation Between Atlantic International and Profound Medical

Can any of the company-specific risk be diversified away by investing in both Atlantic International and Profound Medical 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 Atlantic International and Profound Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atlantic International Corp and Profound Medical Corp, you can compare the effects of market volatilities on Atlantic International and Profound Medical 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 Atlantic International with a short position of Profound Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic International and Profound Medical.

Diversification Opportunities for Atlantic International and Profound Medical

-0.74

Correlation Coefficient

Atlantic International  Profound Medical

Pay attention - limited upside

The 3 months correlation between Atlantic and Profound is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic International Corp and Profound Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Profound Medical Corp and Atlantic International 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 Atlantic International Corp are associated (or correlated) with Profound Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Profound Medical Corp has no effect on the direction of Atlantic International i.e., Atlantic International and Profound Medical go up and down completely randomly.

Pair Corralation between Atlantic International and Profound Medical

Given the investment horizon of 90 days Atlantic International Corp is expected to under-perform the Profound Medical. In addition to that, Atlantic International is 1.64 times more volatile than Profound Medical Corp. It trades about -0.02 of its total potential returns per unit of risk. Profound Medical Corp is currently generating about 0.16 per unit of volatility. If you would invest  458.00  in Profound Medical Corp on August 19, 2025 and sell it today you would earn a total of  227.00  from holding Profound Medical Corp or generate 49.56% return on investment over 90 days.

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

Atlantic International Corp  vs.  Profound Medical Corp

Atlantic International

Risk-Adjusted Performance

Weakest

Over the last 90 days Atlantic International Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Profound Medical Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Profound Medical Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Profound Medical reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atlantic International and Profound Medical

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

The idea behind Atlantic International Corp and Profound Medical Corp 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.