Correlation Between Atari SA and Diagnostic Medical
Can any of the company-specific risk be diversified away by investing in both Atari SA and Diagnostic Medical 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 Diagnostic Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atari SA and Diagnostic Medical Systems, you can compare the effects of market volatilities on Atari SA and Diagnostic Medical 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 Diagnostic Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atari SA and Diagnostic Medical.
Diversification Opportunities for Atari SA and Diagnostic Medical
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atari and Diagnostic is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Atari SA and Diagnostic Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diagnostic Medical 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 Diagnostic Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diagnostic Medical has no effect on the direction of Atari SA i.e., Atari SA and Diagnostic Medical go up and down completely randomly.
Pair Corralation between Atari SA and Diagnostic Medical
Assuming the 90 days trading horizon Atari SA is expected to generate 0.97 times more return on investment than Diagnostic Medical. However, Atari SA is 1.03 times less risky than Diagnostic Medical. It trades about 0.15 of its potential returns per unit of risk. Diagnostic Medical Systems is currently generating about 0.06 per unit of risk. If you would invest 11.00 in Atari SA on October 21, 2024 and sell it today you would earn a total of 1.00 from holding Atari SA or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atari SA vs. Diagnostic Medical Systems
Performance |
| Timeline |
| Atari SA |
| Diagnostic Medical |
Atari SA and Diagnostic Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atari SA and Diagnostic Medical
The main advantage of trading using opposite Atari SA and Diagnostic Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atari SA position performs unexpectedly, Diagnostic Medical 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 Diagnostic Medical will offset losses from the drop in Diagnostic Medical'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 |
| Diagnostic Medical vs. Metalliance SA | Diagnostic Medical vs. Media 6 SA | Diagnostic Medical vs. Reworld Media | Diagnostic Medical vs. Invibes Advertising NV |
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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