Correlation Between Atos SE and Bouygues
Can any of the company-specific risk be diversified away by investing in both Atos SE and Bouygues 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 Bouygues into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Bouygues SA, you can compare the effects of market volatilities on Atos SE and Bouygues 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 Bouygues. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Bouygues.
Diversification Opportunities for Atos SE and Bouygues
Poor diversification
The 3 months correlation between Atos and Bouygues is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Bouygues SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bouygues SA 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 Bouygues. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bouygues SA has no effect on the direction of Atos SE i.e., Atos SE and Bouygues go up and down completely randomly.
Pair Corralation between Atos SE and Bouygues
Assuming the 90 days horizon Atos SE is expected to under-perform the Bouygues. In addition to that, Atos SE is 8.43 times more volatile than Bouygues SA. It trades about -0.11 of its total potential returns per unit of risk. Bouygues SA is currently generating about 0.5 per unit of volatility. If you would invest 2,854 in Bouygues SA on November 1, 2024 and sell it today you would earn a total of 331.00 from holding Bouygues SA or generate 11.6% 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. Bouygues SA
Performance |
| Timeline |
| Atos SE |
| Bouygues SA |
Atos SE and Bouygues Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and Bouygues
The main advantage of trading using opposite Atos SE and Bouygues positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Bouygues 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 Bouygues will offset losses from the drop in Bouygues' long position.| Atos SE vs. Deveron Corp | Atos SE vs. Appen Limited | Atos SE vs. Atos Origin SA | Atos SE vs. Appen Limited |
| Bouygues vs. NV5 Global | Bouygues vs. Matrix Service Co | Bouygues vs. MYR Group | Bouygues vs. Comfort Systems USA |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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