Correlation Between Atos SE and Brinks
Can any of the company-specific risk be diversified away by investing in both Atos SE and Brinks 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 Atos SE and Brinks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Brinks Company, you can compare the effects of market volatilities on Atos SE and Brinks 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 Atos SE with a short position of Brinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Brinks.
Diversification Opportunities for Atos SE and Brinks
Poor diversification
The 3 months correlation between Atos and Brinks is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Brinks Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinks Company and Atos SE 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 Atos SE are associated (or correlated) with Brinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinks Company has no effect on the direction of Atos SE i.e., Atos SE and Brinks go up and down completely randomly.
Pair Corralation between Atos SE and Brinks
Assuming the 90 days horizon Atos SE is expected to generate 68.6 times more return on investment than Brinks. However, Atos SE is 68.6 times more volatile than Brinks Company. It trades about 0.16 of its potential returns per unit of risk. Brinks Company is currently generating about -0.19 per unit of risk. If you would invest 76.00 in Atos SE on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Atos SE or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos SE vs. Brinks Company
Performance |
| Timeline |
| Atos SE |
| Brinks Company |
Atos SE and Brinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and Brinks
The main advantage of trading using opposite Atos SE and Brinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Brinks 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 Brinks will offset losses from the drop in Brinks' long position.| Atos SE vs. Crypto Co | Atos SE vs. Global Develpmts | Atos SE vs. Parsons Corp | Atos SE vs. GBT Technologies |
| Brinks vs. MSA Safety | Brinks vs. Resideo Technologies | Brinks vs. Mistras Group | Brinks vs. NL Industries |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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