Correlation Between Atos SE and CSE Global
Can any of the company-specific risk be diversified away by investing in both Atos SE and CSE Global 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 CSE Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and CSE Global Limited, you can compare the effects of market volatilities on Atos SE and CSE Global 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 CSE Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and CSE Global.
Diversification Opportunities for Atos SE and CSE Global
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atos and CSE is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and CSE Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSE Global Limited 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 CSE Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSE Global Limited has no effect on the direction of Atos SE i.e., Atos SE and CSE Global go up and down completely randomly.
Pair Corralation between Atos SE and CSE Global
Assuming the 90 days horizon Atos SE is expected to under-perform the CSE Global. In addition to that, Atos SE is 1.6 times more volatile than CSE Global Limited. It trades about -0.07 of its total potential returns per unit of risk. CSE Global Limited is currently generating about 0.04 per unit of volatility. If you would invest 26.00 in CSE Global Limited on August 27, 2024 and sell it today you would earn a total of 7.00 from holding CSE Global Limited or generate 26.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 82.66% |
| Values | Daily Returns |
Atos SE vs. CSE Global Limited
Performance |
| Timeline |
| Atos SE |
| CSE Global Limited |
Atos SE and CSE Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and CSE Global
The main advantage of trading using opposite Atos SE and CSE Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, CSE Global 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 CSE Global will offset losses from the drop in CSE Global's long position.The idea behind Atos SE and CSE Global Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CSE Global vs. Two Hands Corp | CSE Global vs. Visium Technologies | CSE Global vs. Tautachrome | CSE Global vs. V Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |