Correlation Between Atos Origin and Deluxe
Can any of the company-specific risk be diversified away by investing in both Atos Origin and Deluxe 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 Deluxe 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 Deluxe, you can compare the effects of market volatilities on Atos Origin and Deluxe 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 Deluxe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos Origin and Deluxe.
Diversification Opportunities for Atos Origin and Deluxe
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atos and Deluxe is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and Deluxe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deluxe 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 Deluxe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deluxe has no effect on the direction of Atos Origin i.e., Atos Origin and Deluxe go up and down completely randomly.
Pair Corralation between Atos Origin and Deluxe
Assuming the 90 days horizon Atos Origin SA is expected to generate 11.79 times more return on investment than Deluxe. However, Atos Origin is 11.79 times more volatile than Deluxe. It trades about 0.17 of its potential returns per unit of risk. Deluxe is currently generating about -0.03 per unit of risk. If you would invest 14.00 in Atos Origin SA on September 12, 2024 and sell it today you would earn a total of 6.00 from holding Atos Origin SA or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos Origin SA vs. Deluxe
Performance |
| Timeline |
| Atos Origin SA |
| Deluxe |
Atos Origin and Deluxe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos Origin and Deluxe
The main advantage of trading using opposite Atos Origin and Deluxe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos Origin position performs unexpectedly, Deluxe 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 Deluxe will offset losses from the drop in Deluxe's long position.| Atos Origin vs. Two Hands Corp | Atos Origin vs. Visium Technologies | Atos Origin vs. Tautachrome | Atos Origin vs. V Group |
| Deluxe vs. Criteo Sa | Deluxe vs. Emerald Expositions Events | Deluxe vs. Marchex | Deluxe vs. Integral Ad Science |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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