Correlation Between Princeton Capital and Atrium Mortgage

Can any of the company-specific risk be diversified away by investing in both Princeton Capital and Atrium Mortgage 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 Princeton Capital and Atrium Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Princeton Capital and Atrium Mortgage Investment, you can compare the effects of market volatilities on Princeton Capital and Atrium Mortgage 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 Princeton Capital with a short position of Atrium Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Princeton Capital and Atrium Mortgage.

Diversification Opportunities for Princeton Capital and Atrium Mortgage

-0.89

Correlation Coefficient

Princeton Capital  Atrium Mortgage

Pay attention - limited upside

The 3 months correlation between Princeton and Atrium is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Princeton Capital and Atrium Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Mortgage Inve and Princeton Capital 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 Princeton Capital are associated (or correlated) with Atrium Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Mortgage Inve has no effect on the direction of Princeton Capital i.e., Princeton Capital and Atrium Mortgage go up and down completely randomly.

Pair Corralation between Princeton Capital and Atrium Mortgage

Given the investment horizon of 90 days Princeton Capital is expected to under-perform the Atrium Mortgage. In addition to that, Princeton Capital is 5.0 times more volatile than Atrium Mortgage Investment. It trades about -0.19 of its total potential returns per unit of risk. Atrium Mortgage Investment is currently generating about 0.19 per unit of volatility. If you would invest  764.00  in Atrium Mortgage Investment on April 30, 2025 and sell it today you would earn a total of  93.00  from holding Atrium Mortgage Investment or generate 12.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Princeton Capital  vs.  Atrium Mortgage Investment

Princeton Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Princeton Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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. Despite nearly fragile basic indicators, Atrium Mortgage may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Princeton Capital and Atrium Mortgage

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

The idea behind Princeton Capital and Atrium Mortgage Investment 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.