Correlation Between Atlantic American and Group Ten
Can any of the company-specific risk be diversified away by investing in both Atlantic American and Group Ten 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 American and Group Ten into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlantic American and Group Ten Metals, you can compare the effects of market volatilities on Atlantic American and Group Ten 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 American with a short position of Group Ten. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlantic American and Group Ten.
Diversification Opportunities for Atlantic American and Group Ten
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlantic and Group is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic American and Group Ten Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Ten Metals and Atlantic American 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 American are associated (or correlated) with Group Ten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Ten Metals has no effect on the direction of Atlantic American i.e., Atlantic American and Group Ten go up and down completely randomly.
Pair Corralation between Atlantic American and Group Ten
Given the investment horizon of 90 days Atlantic American is expected to under-perform the Group Ten. But the stock apears to be less risky and, when comparing its historical volatility, Atlantic American is 2.65 times less risky than Group Ten. The stock trades about -0.13 of its potential returns per unit of risk. The Group Ten Metals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Group Ten Metals on August 29, 2025 and sell it today you would earn a total of 9.00 from holding Group Ten Metals or generate 40.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlantic American vs. Group Ten Metals
Performance |
| Timeline |
| Atlantic American |
| Group Ten Metals |
Atlantic American and Group Ten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlantic American and Group Ten
The main advantage of trading using opposite Atlantic American and Group Ten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic American position performs unexpectedly, Group Ten 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 Group Ten will offset losses from the drop in Group Ten's long position.| Atlantic American vs. Information Planning LTD | Atlantic American vs. ANTA Sports Products | Atlantic American vs. Roadrunner Transportation Systems | Atlantic American vs. Yuexiu Transport Infrastructure |
| Group Ten vs. BHP Group Limited | Group Ten vs. Rio Tinto Group | Group Ten vs. BHP Group Limited | Group Ten vs. Rio Tinto Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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