Correlation Between Amadeus IT and Atos SE
Can any of the company-specific risk be diversified away by investing in both Amadeus IT and Atos SE 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 Amadeus IT and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amadeus IT Group and Atos SE, you can compare the effects of market volatilities on Amadeus IT and Atos SE 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 Amadeus IT with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amadeus IT and Atos SE.
Diversification Opportunities for Amadeus IT and Atos SE
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Amadeus and Atos is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Amadeus IT Group and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Amadeus IT 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 Amadeus IT Group are associated (or correlated) with Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of Amadeus IT i.e., Amadeus IT and Atos SE go up and down completely randomly.
Pair Corralation between Amadeus IT and Atos SE
Assuming the 90 days trading horizon Amadeus IT Group is expected to under-perform the Atos SE. But the stock apears to be less risky and, when comparing its historical volatility, Amadeus IT Group is 155.79 times less risky than Atos SE. The stock trades about -0.04 of its potential returns per unit of risk. The Atos SE is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 73.00 in Atos SE on September 23, 2024 and sell it today you would lose (72.79) from holding Atos SE or give up 99.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amadeus IT Group vs. Atos SE
Performance |
| Timeline |
| Amadeus IT Group |
| Atos SE |
Amadeus IT and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amadeus IT and Atos SE
The main advantage of trading using opposite Amadeus IT and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amadeus IT position performs unexpectedly, Atos SE 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 Atos SE will offset losses from the drop in Atos SE's long position.| Amadeus IT vs. Accenture plc | Amadeus IT vs. International Business Machines | Amadeus IT vs. Infosys Limited | Amadeus IT vs. Cognizant Technology Solutions |
| Atos SE vs. Accenture plc | Atos SE vs. International Business Machines | Atos SE vs. Infosys Limited | Atos SE vs. Cognizant Technology Solutions |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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