Correlation Between Atos Origin and VSE
Can any of the company-specific risk be diversified away by investing in both Atos Origin and VSE 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 VSE 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 VSE Corporation, you can compare the effects of market volatilities on Atos Origin and VSE 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 VSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos Origin and VSE.
Diversification Opportunities for Atos Origin and VSE
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Atos and VSE is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and VSE Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VSE Corporation 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 VSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VSE Corporation has no effect on the direction of Atos Origin i.e., Atos Origin and VSE go up and down completely randomly.
Pair Corralation between Atos Origin and VSE
Assuming the 90 days horizon Atos Origin SA is expected to generate 4.84 times more return on investment than VSE. However, Atos Origin is 4.84 times more volatile than VSE Corporation. It trades about 0.04 of its potential returns per unit of risk. VSE Corporation is currently generating about 0.11 per unit of risk. If you would invest 22.00 in Atos Origin SA on September 3, 2024 and sell it today you would lose (7.00) from holding Atos Origin SA or give up 31.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos Origin SA vs. VSE Corp.
Performance |
| Timeline |
| Atos Origin SA |
| VSE Corporation |
Atos Origin and VSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos Origin and VSE
The main advantage of trading using opposite Atos Origin and VSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos Origin position performs unexpectedly, VSE 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 VSE will offset losses from the drop in VSE's long position.| Atos Origin vs. Appen Limited | Atos Origin vs. Aurora Innovation | Atos Origin vs. Atos SE | Atos Origin vs. Deveron Corp |
| VSE vs. Park Electrochemical | VSE vs. Innovative Solutions and | VSE vs. Curtiss Wright | VSE vs. National Presto 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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