diversifiable risk of combining Atrium Mortgage and TSX Industrials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atrium Mortgage Investment and TSX Industrials Capped, you can compare the effects of market volatilities on Atrium Mortgage and TSX Industrials 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 Atrium Mortgage with a short position of TSX Industrials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and TSX Industrials.
Diversification Opportunities for Atrium Mortgage and TSX Industrials
Pair Corralation between Atrium Mortgage and TSX Industrials
Atrium Mortgage Investment vs. TSX Industrials Capped
Atrium Mortgage and TSX Industrials Volatility Contrast
Atrium Mortgage Investment
Pair trading matchups for Atrium Mortgage
Pair Trading with Atrium Mortgage and TSX IndustrialsThe main advantage of trading using opposite Atrium Mortgage and TSX Industrials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, TSX Industrials 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 TSX Industrials will offset losses from the drop in TSX Industrials' long position. The idea behind Atrium Mortgage Investment and TSX Industrials Capped 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .