Correlation Between Atos Origin and Appen
Can any of the company-specific risk be diversified away by investing in both Atos Origin and Appen 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 Origin and Appen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos Origin SA and Appen Limited, you can compare the effects of market volatilities on Atos Origin and Appen 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 Origin with a short position of Appen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos Origin and Appen.
Diversification Opportunities for Atos Origin and Appen
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atos and Appen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and Appen Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appen Limited and Atos Origin 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 Origin SA are associated (or correlated) with Appen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appen Limited has no effect on the direction of Atos Origin i.e., Atos Origin and Appen go up and down completely randomly.
Pair Corralation between Atos Origin and Appen
Assuming the 90 days horizon Atos Origin SA is expected to under-perform the Appen. In addition to that, Atos Origin is 1.76 times more volatile than Appen Limited. It trades about -0.15 of its total potential returns per unit of risk. Appen Limited is currently generating about 0.1 per unit of volatility. If you would invest 99.00 in Appen Limited on October 25, 2024 and sell it today you would earn a total of 55.00 from holding Appen Limited or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.65% |
| Values | Daily Returns |
Atos Origin SA vs. Appen Limited
Performance |
| Timeline |
| Atos Origin SA |
| Appen Limited |
Atos Origin and Appen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos Origin and Appen
The main advantage of trading using opposite Atos Origin and Appen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos Origin position performs unexpectedly, Appen 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 Appen will offset losses from the drop in Appen's long position.| Atos Origin vs. Appen Limited | Atos Origin vs. Aurora Innovation | Atos Origin vs. Atos SE | Atos Origin vs. Deveron Corp |
| Appen vs. Appen Limited | Appen vs. Direct Communication Solutions | Appen vs. Capgemini SE ADR | Appen vs. Quisitive Technology Solutions |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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