Correlation Between Atos SE and Capgemini
Can any of the company-specific risk be diversified away by investing in both Atos SE and Capgemini 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 Capgemini into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Capgemini SE ADR, you can compare the effects of market volatilities on Atos SE and Capgemini 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 Capgemini. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Capgemini.
Diversification Opportunities for Atos SE and Capgemini
Average diversification
The 3 months correlation between Atos and Capgemini is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Capgemini SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capgemini SE ADR 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 Capgemini. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capgemini SE ADR has no effect on the direction of Atos SE i.e., Atos SE and Capgemini go up and down completely randomly.
Pair Corralation between Atos SE and Capgemini
Assuming the 90 days horizon Atos SE is expected to generate 6.1 times less return on investment than Capgemini. In addition to that, Atos SE is 6.48 times more volatile than Capgemini SE ADR. It trades about 0.01 of its total potential returns per unit of risk. Capgemini SE ADR is currently generating about 0.43 per unit of volatility. If you would invest 3,204 in Capgemini SE ADR on November 4, 2024 and sell it today you would earn a total of 437.00 from holding Capgemini SE ADR or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos SE vs. Capgemini SE ADR
Performance |
| Timeline |
| Atos SE |
| Capgemini SE ADR |
Atos SE and Capgemini Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and Capgemini
The main advantage of trading using opposite Atos SE and Capgemini positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Capgemini 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 Capgemini will offset losses from the drop in Capgemini's long position.| Atos SE vs. Deveron Corp | Atos SE vs. Appen Limited | Atos SE vs. Atos Origin SA | Atos SE vs. Appen Limited |
| Capgemini vs. Soluna Holdings Preferred | Capgemini vs. Crypto Co | Capgemini vs. ASGN Inc | Capgemini vs. Soluna Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |