Correlation Between ATOSS Software and Singapore Telecommunicatio

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Can any of the company-specific risk be diversified away by investing in both ATOSS Software and Singapore Telecommunicatio 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 Singapore Telecommunicatio 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 Singapore Telecommunications Limited, you can compare the effects of market volatilities on ATOSS Software and Singapore Telecommunicatio 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 Singapore Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS Software and Singapore Telecommunicatio.

Diversification Opportunities for ATOSS Software and Singapore Telecommunicatio

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between ATOSS and Singapore is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS Software SE and Singapore Telecommunications L in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Telecommunicatio 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 Singapore Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Telecommunicatio has no effect on the direction of ATOSS Software i.e., ATOSS Software and Singapore Telecommunicatio go up and down completely randomly.

Pair Corralation between ATOSS Software and Singapore Telecommunicatio

Assuming the 90 days trading horizon ATOSS Software SE is expected to generate 0.91 times more return on investment than Singapore Telecommunicatio. However, ATOSS Software SE is 1.1 times less risky than Singapore Telecommunicatio. It trades about 0.0 of its potential returns per unit of risk. Singapore Telecommunications Limited is currently generating about -0.01 per unit of risk. If you would invest  12,060  in ATOSS Software SE on September 12, 2024 and sell it today you would lose (40.00) from holding ATOSS Software SE or give up 0.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

ATOSS Software SE  vs.  Singapore Telecommunications L

 Performance 
       Timeline  
ATOSS Software SE 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in ATOSS Software SE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, ATOSS Software is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
Singapore Telecommunicatio 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Singapore Telecommunications Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Singapore Telecommunicatio is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

ATOSS Software and Singapore Telecommunicatio Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ATOSS Software and Singapore Telecommunicatio

The main advantage of trading using opposite ATOSS Software and Singapore Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATOSS Software position performs unexpectedly, Singapore Telecommunicatio 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 Singapore Telecommunicatio will offset losses from the drop in Singapore Telecommunicatio's long position.
The idea behind ATOSS Software SE and Singapore Telecommunications Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Transaction History module to view history of all your transactions and understand their impact on performance.

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