Correlation Between Atlanticus Holdings and Regional Management

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Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings and Regional Management 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 Atlanticus Holdings and Regional Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings and Regional Management Corp, you can compare the effects of market volatilities on Atlanticus Holdings and Regional Management 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 Atlanticus Holdings with a short position of Regional Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and Regional Management.

Diversification Opportunities for Atlanticus Holdings and Regional Management

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Atlanticus and Regional is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings and Regional Management Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Management Corp and Atlanticus Holdings 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 Atlanticus Holdings are associated (or correlated) with Regional Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Management Corp has no effect on the direction of Atlanticus Holdings i.e., Atlanticus Holdings and Regional Management go up and down completely randomly.

Pair Corralation between Atlanticus Holdings and Regional Management

Given the investment horizon of 90 days Atlanticus Holdings is expected to generate 1.17 times more return on investment than Regional Management. However, Atlanticus Holdings is 1.17 times more volatile than Regional Management Corp. It trades about 0.14 of its potential returns per unit of risk. Regional Management Corp is currently generating about 0.02 per unit of risk. If you would invest  5,476  in Atlanticus Holdings on October 10, 2025 and sell it today you would earn a total of  1,373  from holding Atlanticus Holdings or generate 25.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Atlanticus Holdings  vs.  Regional Management Corp

 Performance 
       Timeline  
Atlanticus Holdings 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Atlanticus Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak essential indicators, Atlanticus Holdings exhibited solid returns over the last few months and may actually be approaching a breakup point.
Regional Management Corp 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Regional Management Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Regional Management is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Atlanticus Holdings and Regional Management Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atlanticus Holdings and Regional Management

The main advantage of trading using opposite Atlanticus Holdings and Regional Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings position performs unexpectedly, Regional Management 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 Regional Management will offset losses from the drop in Regional Management's long position.
The idea behind Atlanticus Holdings and Regional Management 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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