Correlation Between Atrium Mortgage and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Atrium Mortgage and Coca Cola 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 Coca Cola 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 Coca Cola CDR, you can compare the effects of market volatilities on Atrium Mortgage and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrium Mortgage and Coca Cola.
Diversification Opportunities for Atrium Mortgage and Coca Cola
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrium and Coca is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Atrium Mortgage Investment and Coca Cola CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola CDR 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola CDR has no effect on the direction of Atrium Mortgage i.e., Atrium Mortgage and Coca Cola go up and down completely randomly.
Pair Corralation between Atrium Mortgage and Coca Cola
Assuming the 90 days horizon Atrium Mortgage Investment is expected to generate 0.73 times more return on investment than Coca Cola. However, Atrium Mortgage Investment is 1.37 times less risky than Coca Cola. It trades about 0.01 of its potential returns per unit of risk. Coca Cola CDR is currently generating about -0.04 per unit of risk. If you would invest 1,143 in Atrium Mortgage Investment on July 20, 2025 and sell it today you would earn a total of 5.00 from holding Atrium Mortgage Investment or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrium Mortgage Investment vs. Coca Cola CDR
Performance |
| Timeline |
| Atrium Mortgage Inve |
| Coca Cola CDR |
Atrium Mortgage and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrium Mortgage and Coca Cola
The main advantage of trading using opposite Atrium Mortgage and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrium Mortgage position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Atrium Mortgage vs. Timbercreek Financial Corp | Atrium Mortgage vs. Firm Capital Mortgage | Atrium Mortgage vs. VersaBank | Atrium Mortgage vs. Life Banc Split |
| Coca Cola vs. Doman Building Materials | Coca Cola vs. Americas Silver Corp | Coca Cola vs. Applied Materials, | Coca Cola vs. Sparx Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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