Correlation Between COFCO Joycome and Atos SE
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Atos SE 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 COFCO Joycome and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and Atos SE, you can compare the effects of market volatilities on COFCO Joycome and Atos SE 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 COFCO Joycome with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Atos SE.
Diversification Opportunities for COFCO Joycome and Atos SE
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between COFCO and Atos is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Atos SE go up and down completely randomly.
Pair Corralation between COFCO Joycome and Atos SE
Assuming the 90 days horizon COFCO Joycome Foods is expected to generate 0.1 times more return on investment than Atos SE. However, COFCO Joycome Foods is 9.83 times less risky than Atos SE. It trades about -0.05 of its potential returns per unit of risk. Atos SE is currently generating about -0.24 per unit of risk. If you would invest 17.00 in COFCO Joycome Foods on October 28, 2024 and sell it today you would lose (1.00) from holding COFCO Joycome Foods or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Atos SE
Performance |
| Timeline |
| COFCO Joycome Foods |
| Atos SE |
COFCO Joycome and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Atos SE
The main advantage of trading using opposite COFCO Joycome and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Atos SE 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 Atos SE will offset losses from the drop in Atos SE's long position.| COFCO Joycome vs. General Mills | COFCO Joycome vs. Danone SA | COFCO Joycome vs. Hormel Foods | COFCO Joycome vs. Kellogg Company |
| Atos SE vs. Accenture plc | Atos SE vs. International Business Machines | Atos SE vs. International Business Machines | Atos SE vs. Infosys Limited |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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