Correlation Between ATOSS Software and PT Bank
Can any of the company-specific risk be diversified away by investing in both ATOSS Software and PT Bank 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 ATOSS Software and PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATOSS Software SE and PT Bank Maybank, you can compare the effects of market volatilities on ATOSS Software and PT Bank 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 ATOSS Software with a short position of PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS Software and PT Bank.
Diversification Opportunities for ATOSS Software and PT Bank
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATOSS and BOZA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS Software SE and PT Bank Maybank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Maybank and ATOSS Software 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 ATOSS Software SE are associated (or correlated) with PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Maybank has no effect on the direction of ATOSS Software i.e., ATOSS Software and PT Bank go up and down completely randomly.
Pair Corralation between ATOSS Software and PT Bank
Assuming the 90 days horizon ATOSS Software SE is expected to generate 0.46 times more return on investment than PT Bank. However, ATOSS Software SE is 2.16 times less risky than PT Bank. It trades about -0.02 of its potential returns per unit of risk. PT Bank Maybank is currently generating about -0.04 per unit of risk. If you would invest 11,100 in ATOSS Software SE on October 20, 2024 and sell it today you would lose (100.00) from holding ATOSS Software SE or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATOSS Software SE vs. PT Bank Maybank
Performance |
| Timeline |
| ATOSS Software SE |
| PT Bank Maybank |
ATOSS Software and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATOSS Software and PT Bank
The main advantage of trading using opposite ATOSS Software and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATOSS Software position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| ATOSS Software vs. WESANA HEALTH HOLD | ATOSS Software vs. CONTAGIOUS GAMING INC | ATOSS Software vs. BJs Restaurants | ATOSS Software vs. GAMING FAC SA |
| PT Bank vs. United Rentals | PT Bank vs. Air Lease | PT Bank vs. ALBIS LEASING AG | PT Bank vs. LANDSEA GREEN MANAGEMENT |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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