Correlation Between Atos Origin and Interface
Can any of the company-specific risk be diversified away by investing in both Atos Origin and Interface 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 Interface 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 Interface, you can compare the effects of market volatilities on Atos Origin and Interface 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 Interface. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos Origin and Interface.
Diversification Opportunities for Atos Origin and Interface
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atos and Interface is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and Interface in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interface 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 Interface. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interface has no effect on the direction of Atos Origin i.e., Atos Origin and Interface go up and down completely randomly.
Pair Corralation between Atos Origin and Interface
Assuming the 90 days horizon Atos Origin SA is expected to under-perform the Interface. In addition to that, Atos Origin is 8.97 times more volatile than Interface. It trades about -0.25 of its total potential returns per unit of risk. Interface is currently generating about 0.08 per unit of volatility. If you would invest 2,414 in Interface on November 5, 2024 and sell it today you would earn a total of 62.00 from holding Interface or generate 2.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos Origin SA vs. Interface
Performance |
| Timeline |
| Atos Origin SA |
| Interface |
Atos Origin and Interface Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos Origin and Interface
The main advantage of trading using opposite Atos Origin and Interface positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos Origin position performs unexpectedly, Interface 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 Interface will offset losses from the drop in Interface's long position.| Atos Origin vs. Appen Limited | Atos Origin vs. Aurora Innovation | Atos Origin vs. Atos SE | Atos Origin vs. Deveron Corp |
| Interface vs. Quanex Building Products | Interface vs. Janus International Group | Interface vs. Apogee Enterprises | Interface vs. Gibraltar 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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