Correlation Between Atlantic Amer and Greenlight Cap

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

Diversification Opportunities for Atlantic Amer and Greenlight Cap

0.35
  Correlation Coefficient

Weak diversification

The 3 months correlation between Atlantic and Greenlight is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Atlantic Amer Cp and Greenlight Cap Re in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenlight Cap Re and Atlantic Amer 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 Atlantic Amer Cp are associated (or correlated) with Greenlight Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenlight Cap Re has no effect on the direction of Atlantic Amer i.e., Atlantic Amer and Greenlight Cap go up and down completely randomly.

Pair Corralation between Atlantic Amer and Greenlight Cap

Given the investment horizon of 90 days Atlantic Amer Cp is expected to generate 3.75 times more return on investment than Greenlight Cap. However, Atlantic Amer is 3.75 times more volatile than Greenlight Cap Re. It trades about 0.04 of its potential returns per unit of risk. Greenlight Cap Re is currently generating about 0.02 per unit of risk. If you would invest  199.00  in Atlantic Amer Cp on June 30, 2022 and sell it today you would earn a total of  89.00  from holding Atlantic Amer Cp or generate 44.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Atlantic Amer Cp  vs.  Greenlight Cap Re

 Performance (%) 
       Timeline  
Atlantic Amer Cp 
Atlantic Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Atlantic Amer Cp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak primary indicators, Atlantic Amer exhibited solid returns over the last few months and may actually be approaching a breakup point.

Atlantic Price Channel

Greenlight Cap Re 
Greenlight Performance
0 of 100
Over the last 90 days Greenlight Cap Re has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Greenlight Cap is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Greenlight Price Channel

Atlantic Amer and Greenlight Cap Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atlantic Amer and Greenlight Cap

The main advantage of trading using opposite Atlantic Amer and Greenlight Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlantic Amer position performs unexpectedly, Greenlight Cap 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 Greenlight Cap will offset losses from the drop in Greenlight Cap's long position.
Atlantic Amer vs. Kibush Capital Corp
The idea behind Atlantic Amer Cp and Greenlight Cap Re 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.
Greenlight Cap vs. Clearwater Paper Corp
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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