Correlation Between Atlanticus Holdings and ACRES Commercial
Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings and ACRES Commercial 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 ACRES Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings Corp and ACRES Commercial Realty, you can compare the effects of market volatilities on Atlanticus Holdings and ACRES Commercial 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 ACRES Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and ACRES Commercial.
Diversification Opportunities for Atlanticus Holdings and ACRES Commercial
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlanticus and ACRES is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings Corp and ACRES Commercial Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACRES Commercial Realty 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 Corp are associated (or correlated) with ACRES Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACRES Commercial Realty has no effect on the direction of Atlanticus Holdings i.e., Atlanticus Holdings and ACRES Commercial go up and down completely randomly.
Pair Corralation between Atlanticus Holdings and ACRES Commercial
Assuming the 90 days horizon Atlanticus Holdings is expected to generate 1.39 times less return on investment than ACRES Commercial. In addition to that, Atlanticus Holdings is 1.25 times more volatile than ACRES Commercial Realty. It trades about 0.09 of its total potential returns per unit of risk. ACRES Commercial Realty is currently generating about 0.15 per unit of volatility. If you would invest 2,444 in ACRES Commercial Realty on May 29, 2025 and sell it today you would earn a total of 103.00 from holding ACRES Commercial Realty or generate 4.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlanticus Holdings Corp vs. ACRES Commercial Realty
Performance |
| Timeline |
| Atlanticus Holdings Corp |
| ACRES Commercial Realty |
Atlanticus Holdings and ACRES Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlanticus Holdings and ACRES Commercial
The main advantage of trading using opposite Atlanticus Holdings and ACRES Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings position performs unexpectedly, ACRES Commercial 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 ACRES Commercial will offset losses from the drop in ACRES Commercial's long position.| Atlanticus Holdings vs. Atlanticus Holdings | Atlanticus Holdings vs. PRA Group | Atlanticus Holdings vs. Enova International | Atlanticus Holdings vs. Orix Corp Ads |
| ACRES Commercial vs. ACRES Commercial Realty | ACRES Commercial vs. Cherry Hill Mortgage | ACRES Commercial vs. AG Mortgage Investment | ACRES Commercial vs. Chimera 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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