Correlation Between Atos Origin and Brinks
Can any of the company-specific risk be diversified away by investing in both Atos Origin and Brinks 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 Brinks 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 Brinks Company, you can compare the effects of market volatilities on Atos Origin and Brinks 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 Brinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos Origin and Brinks.
Diversification Opportunities for Atos Origin and Brinks
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atos and Brinks is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and Brinks Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinks Company 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 Brinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinks Company has no effect on the direction of Atos Origin i.e., Atos Origin and Brinks go up and down completely randomly.
Pair Corralation between Atos Origin and Brinks
Assuming the 90 days horizon Atos Origin SA is expected to generate 4.86 times more return on investment than Brinks. However, Atos Origin is 4.86 times more volatile than Brinks Company. It trades about 0.29 of its potential returns per unit of risk. Brinks Company is currently generating about -0.19 per unit of risk. If you would invest 13.00 in Atos Origin SA on September 3, 2024 and sell it today you would earn a total of 7.00 from holding Atos Origin SA or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos Origin SA vs. Brinks Company
Performance |
| Timeline |
| Atos Origin SA |
| Brinks Company |
Atos Origin and Brinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos Origin and Brinks
The main advantage of trading using opposite Atos Origin and Brinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos Origin position performs unexpectedly, Brinks 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 Brinks will offset losses from the drop in Brinks' long position.| Atos Origin vs. Appen Limited | Atos Origin vs. Aurora Innovation | Atos Origin vs. Atos SE | Atos Origin vs. Deveron Corp |
| Brinks vs. MSA Safety | Brinks vs. Resideo Technologies | Brinks vs. Mistras Group | Brinks vs. NL Industries |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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