Correlation Between INVITATION HOMES and ATOSS Software
Can any of the company-specific risk be diversified away by investing in both INVITATION HOMES and ATOSS Software 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 INVITATION HOMES and ATOSS Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INVITATION HOMES DL and ATOSS Software SE, you can compare the effects of market volatilities on INVITATION HOMES and ATOSS Software 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 INVITATION HOMES with a short position of ATOSS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of INVITATION HOMES and ATOSS Software.
Diversification Opportunities for INVITATION HOMES and ATOSS Software
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INVITATION and ATOSS is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding INVITATION HOMES DL and ATOSS Software SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS Software SE and INVITATION HOMES 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 INVITATION HOMES DL are associated (or correlated) with ATOSS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS Software SE has no effect on the direction of INVITATION HOMES i.e., INVITATION HOMES and ATOSS Software go up and down completely randomly.
Pair Corralation between INVITATION HOMES and ATOSS Software
Assuming the 90 days horizon INVITATION HOMES is expected to generate 2.58 times less return on investment than ATOSS Software. But when comparing it to its historical volatility, INVITATION HOMES DL is 1.36 times less risky than ATOSS Software. It trades about 0.03 of its potential returns per unit of risk. ATOSS Software SE is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,860 in ATOSS Software SE on September 14, 2024 and sell it today you would earn a total of 4,980 from holding ATOSS Software SE or generate 72.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INVITATION HOMES DL vs. ATOSS Software SE
Performance |
| Timeline |
| INVITATION HOMES |
| ATOSS Software SE |
INVITATION HOMES and ATOSS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INVITATION HOMES and ATOSS Software
The main advantage of trading using opposite INVITATION HOMES and ATOSS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INVITATION HOMES position performs unexpectedly, ATOSS Software 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 ATOSS Software will offset losses from the drop in ATOSS Software's long position.| INVITATION HOMES vs. American Homes 4 | INVITATION HOMES vs. Superior Plus Corp | INVITATION HOMES vs. SIVERS SEMICONDUCTORS AB | INVITATION HOMES vs. NorAm Drilling AS |
| ATOSS Software vs. Automatic Data Processing | ATOSS Software vs. INVITATION HOMES DL | ATOSS Software vs. National Storage Affiliates | ATOSS Software vs. LANDSEA HOMES P |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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