Correlation Between Atos Origin and Science Applications
Can any of the company-specific risk be diversified away by investing in both Atos Origin and Science Applications 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 Science Applications 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 Science Applications International, you can compare the effects of market volatilities on Atos Origin and Science Applications 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 Science Applications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos Origin and Science Applications.
Diversification Opportunities for Atos Origin and Science Applications
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atos and Science is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and Science Applications Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science Applications 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 Science Applications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science Applications has no effect on the direction of Atos Origin i.e., Atos Origin and Science Applications go up and down completely randomly.
Pair Corralation between Atos Origin and Science Applications
Assuming the 90 days horizon Atos Origin SA is expected to generate 2.32 times more return on investment than Science Applications. However, Atos Origin is 2.32 times more volatile than Science Applications International. It trades about 0.28 of its potential returns per unit of risk. Science Applications International is currently generating about -0.18 per unit of risk. If you would invest 13.00 in Atos Origin SA on September 2, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos Origin SA vs. Science Applications Internati
Performance |
| Timeline |
| Atos Origin SA |
| Science Applications |
Atos Origin and Science Applications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos Origin and Science Applications
The main advantage of trading using opposite Atos Origin and Science Applications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos Origin position performs unexpectedly, Science Applications 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 Science Applications will offset losses from the drop in Science Applications' long position.| Atos Origin vs. Appen Limited | Atos Origin vs. Aurora Innovation | Atos Origin vs. Atos SE | Atos Origin vs. Deveron Corp |
| Science Applications vs. FiscalNote Holdings | Science Applications vs. Innodata | Science Applications vs. Aurora Innovation | Science Applications vs. Conduent |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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