Correlation Between ATOSS SOFTWARE and American Eagle
Can any of the company-specific risk be diversified away by investing in both ATOSS SOFTWARE and American Eagle 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 American Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATOSS SOFTWARE and American Eagle Outfitters, you can compare the effects of market volatilities on ATOSS SOFTWARE and American Eagle 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 American Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and American Eagle.
Diversification Opportunities for ATOSS SOFTWARE and American Eagle
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATOSS and American is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and American Eagle Outfitters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Eagle Outfitters 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 are associated (or correlated) with American Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Eagle Outfitters has no effect on the direction of ATOSS SOFTWARE i.e., ATOSS SOFTWARE and American Eagle go up and down completely randomly.
Pair Corralation between ATOSS SOFTWARE and American Eagle
Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to generate 0.96 times more return on investment than American Eagle. However, ATOSS SOFTWARE is 1.04 times less risky than American Eagle. It trades about 0.04 of its potential returns per unit of risk. American Eagle Outfitters is currently generating about -0.03 per unit of risk. If you would invest 11,400 in ATOSS SOFTWARE on September 1, 2024 and sell it today you would earn a total of 940.00 from holding ATOSS SOFTWARE or generate 8.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATOSS SOFTWARE vs. American Eagle Outfitters
Performance |
| Timeline |
| ATOSS SOFTWARE |
| American Eagle Outfitters |
ATOSS SOFTWARE and American Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATOSS SOFTWARE and American Eagle
The main advantage of trading using opposite ATOSS SOFTWARE and American Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATOSS SOFTWARE position performs unexpectedly, American Eagle 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 American Eagle will offset losses from the drop in American Eagle's long position.| ATOSS SOFTWARE vs. SIVERS SEMICONDUCTORS AB | ATOSS SOFTWARE vs. Darden Restaurants | ATOSS SOFTWARE vs. Reliance Steel Aluminum | ATOSS SOFTWARE vs. Q2M Managementberatung AG |
| American Eagle vs. LPKF Laser Electronics | American Eagle vs. AOI Electronics Co | American Eagle vs. CITY OFFICE REIT | American Eagle vs. ARROW ELECTRONICS |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |