Correlation Between Atrium Mortgage and Bank of New York

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Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Bank of New York 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 Atrium Mortgage and Bank of New York 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 Canadian Banc Corp, you can compare the effects of market volatilities on Atrium Mortgage and Bank of New York 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 Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Bank of New York.

Diversification Opportunities for Atrium Mortgage and Bank of New York

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between Atrium and Bank is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Canadian Banc Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Banc Corp and Atrium Mortgage 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 Atrium Mortgage Investment are associated (or correlated) with Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Banc Corp has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Bank of New York go up and down completely randomly.

Pair Corralation between Atrium Mortgage and Bank of New York

Assuming the 90 days horizon Atrium Mortgage is expected to generate 416.5 times less return on investment than Bank of New York. But when comparing it to its historical volatility, Atrium Mortgage Investment is 1.49 times less risky than Bank of New York. It trades about 0.0 of its potential returns per unit of risk. Canadian Banc Corp is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  1,155  in Canadian Banc Corp on August 28, 2025 and sell it today you would earn a total of  265.00  from holding Canadian Banc Corp or generate 22.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Atrium Mortgage Investment  vs.  Canadian Banc Corp

 Performance 
       Timeline  
Atrium Mortgage Inve 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Atrium Mortgage Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Atrium Mortgage is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
Canadian Banc Corp 

Risk-Adjusted Performance

Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Banc Corp are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Bank of New York displayed solid returns over the last few months and may actually be approaching a breakup point.

Atrium Mortgage and Bank of New York Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atrium Mortgage and Bank of New York

The main advantage of trading using opposite Atrium Mortgage and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.
The idea behind Atrium Mortgage Investment and Canadian Banc 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

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