Correlation Between Northstar Clean and Atlas Engineered
Can any of the company-specific risk be diversified away by investing in both Northstar Clean and Atlas Engineered 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 Northstar Clean and Atlas Engineered into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northstar Clean Technologies and Atlas Engineered Products, you can compare the effects of market volatilities on Northstar Clean and Atlas Engineered 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 Northstar Clean with a short position of Atlas Engineered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northstar Clean and Atlas Engineered.
Diversification Opportunities for Northstar Clean and Atlas Engineered
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Northstar and Atlas is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Northstar Clean Technologies and Atlas Engineered Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Engineered Products and Northstar Clean 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 Northstar Clean Technologies are associated (or correlated) with Atlas Engineered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Engineered Products has no effect on the direction of Northstar Clean i.e., Northstar Clean and Atlas Engineered go up and down completely randomly.
Pair Corralation between Northstar Clean and Atlas Engineered
Assuming the 90 days horizon Northstar Clean Technologies is expected to generate 1.48 times more return on investment than Atlas Engineered. However, Northstar Clean is 1.48 times more volatile than Atlas Engineered Products. It trades about -0.03 of its potential returns per unit of risk. Atlas Engineered Products is currently generating about -0.12 per unit of risk. If you would invest 23.00 in Northstar Clean Technologies on September 5, 2025 and sell it today you would lose (3.00) from holding Northstar Clean Technologies or give up 13.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northstar Clean Technologies vs. Atlas Engineered Products
Performance |
| Timeline |
| Northstar Clean Tech |
| Atlas Engineered Products |
Northstar Clean and Atlas Engineered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northstar Clean and Atlas Engineered
The main advantage of trading using opposite Northstar Clean and Atlas Engineered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northstar Clean position performs unexpectedly, Atlas Engineered 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 Atlas Engineered will offset losses from the drop in Atlas Engineered's long position.| Northstar Clean vs. Japan Airlines Ltd | Northstar Clean vs. Fernhill Beverage | Northstar Clean vs. Bridgford Foods | Northstar Clean vs. United Natural Foods |
| Atlas Engineered vs. Summit Environmental | Atlas Engineered vs. CyberArk Software | Atlas Engineered vs. Tree Island Steel | Atlas Engineered vs. Take Two Interactive Software |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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