Correlation Between Atos SE and GBT Technologies
Can any of the company-specific risk be diversified away by investing in both Atos SE and GBT Technologies 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 GBT Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and GBT Technologies, you can compare the effects of market volatilities on Atos SE and GBT Technologies 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 GBT Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and GBT Technologies.
Diversification Opportunities for Atos SE and GBT Technologies
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atos and GBT is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and GBT Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBT Technologies 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 GBT Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBT Technologies has no effect on the direction of Atos SE i.e., Atos SE and GBT Technologies go up and down completely randomly.
Pair Corralation between Atos SE and GBT Technologies
Assuming the 90 days horizon Atos SE is expected to generate 38.5 times less return on investment than GBT Technologies. But when comparing it to its historical volatility, Atos SE is 5.96 times less risky than GBT Technologies. It trades about 0.02 of its potential returns per unit of risk. GBT Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.10 in GBT Technologies on August 31, 2024 and sell it today you would lose (0.09) from holding GBT Technologies or give up 90.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos SE vs. GBT Technologies
Performance |
| Timeline |
| Atos SE |
| GBT Technologies |
Atos SE and GBT Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and GBT Technologies
The main advantage of trading using opposite Atos SE and GBT Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, GBT Technologies 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 GBT Technologies will offset losses from the drop in GBT Technologies' long position.| Atos SE vs. Deveron Corp | Atos SE vs. Appen Limited | Atos SE vs. Atos Origin SA | Atos SE vs. Appen Limited |
| GBT Technologies vs. SEATech Ventures Corp | GBT Technologies vs. Alternet Systems | GBT Technologies vs. Crypto Co | GBT Technologies vs. Xalles 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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