Correlation Between AXIS Capital and Atlas Financial
Can any of the company-specific risk be diversified away by investing in both AXIS Capital and Atlas Financial 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 AXIS Capital and Atlas Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXIS Capital Holdings and Atlas Financial Holdings, you can compare the effects of market volatilities on AXIS Capital and Atlas Financial 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 AXIS Capital with a short position of Atlas Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXIS Capital and Atlas Financial.
Diversification Opportunities for AXIS Capital and Atlas Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AXIS and Atlas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AXIS Capital Holdings and Atlas Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Financial Holdings and AXIS 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 AXIS Capital Holdings are associated (or correlated) with Atlas Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Financial Holdings has no effect on the direction of AXIS Capital i.e., AXIS Capital and Atlas Financial go up and down completely randomly.
Pair Corralation between AXIS Capital and Atlas Financial
If you would invest (100.00) in Atlas Financial Holdings on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Atlas Financial Holdings 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 |
AXIS Capital Holdings vs. Atlas Financial Holdings
Performance |
| Timeline |
| AXIS Capital Holdings |
| Atlas Financial Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AXIS Capital and Atlas Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXIS Capital and Atlas Financial
The main advantage of trading using opposite AXIS Capital and Atlas Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXIS Capital position performs unexpectedly, Atlas Financial 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 Atlas Financial will offset losses from the drop in Atlas Financial's long position.The idea behind AXIS Capital Holdings and Atlas Financial Holdings 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.| Atlas Financial vs. Flexible Solutions International | Atlas Financial vs. Apogee Enterprises | Atlas Financial vs. Tarsus PharmaceuticalsInc | Atlas Financial vs. US GoldMining Common |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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