Correlation Between ATOSS SOFTWARE and Markel
Can any of the company-specific risk be diversified away by investing in both ATOSS SOFTWARE and Markel 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 Markel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATOSS SOFTWARE and Markel, you can compare the effects of market volatilities on ATOSS SOFTWARE and Markel 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 Markel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and Markel.
Diversification Opportunities for ATOSS SOFTWARE and Markel
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATOSS and Markel is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and Markel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Markel 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 Markel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Markel has no effect on the direction of ATOSS SOFTWARE i.e., ATOSS SOFTWARE and Markel go up and down completely randomly.
Pair Corralation between ATOSS SOFTWARE and Markel
Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to generate 1.32 times more return on investment than Markel. However, ATOSS SOFTWARE is 1.32 times more volatile than Markel. It trades about 0.06 of its potential returns per unit of risk. Markel is currently generating about 0.05 per unit of risk. If you would invest 7,236 in ATOSS SOFTWARE on September 4, 2024 and sell it today you would earn a total of 4,964 from holding ATOSS SOFTWARE or generate 68.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATOSS SOFTWARE vs. Markel
Performance |
| Timeline |
| ATOSS SOFTWARE |
| Markel |
ATOSS SOFTWARE and Markel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATOSS SOFTWARE and Markel
The main advantage of trading using opposite ATOSS SOFTWARE and Markel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATOSS SOFTWARE position performs unexpectedly, Markel 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 Markel will offset losses from the drop in Markel's long position.| ATOSS SOFTWARE vs. GRIFFIN MINING LTD | ATOSS SOFTWARE vs. Ross Stores | ATOSS SOFTWARE vs. Costco Wholesale Corp | ATOSS SOFTWARE vs. BJs Wholesale Club |
| Markel vs. Chuangs China Investments | Markel vs. Xinhua Winshare Publishing | Markel vs. EEDUCATION ALBERT AB | Markel vs. CapitaLand Investment Limited |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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