Correlation Between Atari SA and Agrogeneration
Can any of the company-specific risk be diversified away by investing in both Atari SA and Agrogeneration 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 Atari SA and Agrogeneration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atari SA and Agrogeneration, you can compare the effects of market volatilities on Atari SA and Agrogeneration 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 Atari SA with a short position of Agrogeneration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atari SA and Agrogeneration.
Diversification Opportunities for Atari SA and Agrogeneration
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atari and Agrogeneration is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Atari SA and Agrogeneration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrogeneration and Atari SA 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 Atari SA are associated (or correlated) with Agrogeneration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrogeneration has no effect on the direction of Atari SA i.e., Atari SA and Agrogeneration go up and down completely randomly.
Pair Corralation between Atari SA and Agrogeneration
Assuming the 90 days trading horizon Atari SA is expected to generate 2.64 times less return on investment than Agrogeneration. But when comparing it to its historical volatility, Atari SA is 1.84 times less risky than Agrogeneration. It trades about 0.01 of its potential returns per unit of risk. Agrogeneration is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7.66 in Agrogeneration on November 2, 2024 and sell it today you would lose (1.88) from holding Agrogeneration or give up 24.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Atari SA vs. Agrogeneration
Performance |
| Timeline |
| Atari SA |
| Agrogeneration |
Atari SA and Agrogeneration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atari SA and Agrogeneration
The main advantage of trading using opposite Atari SA and Agrogeneration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atari SA position performs unexpectedly, Agrogeneration 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 Agrogeneration will offset losses from the drop in Agrogeneration's long position.| Atari SA vs. Nacon Sa | Atari SA vs. Solutions 30 SE | Atari SA vs. OVH Groupe SAS | Atari SA vs. GECI International SA |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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