Correlation Between Appen and Atos SE
Can any of the company-specific risk be diversified away by investing in both Appen and Atos SE 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 Appen and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Appen Limited and Atos SE, you can compare the effects of market volatilities on Appen and Atos SE 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 Appen with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appen and Atos SE.
Diversification Opportunities for Appen and Atos SE
Pay attention - limited upside
The 3 months correlation between Appen and Atos is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Appen Limited and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Appen 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 Appen Limited are associated (or correlated) with Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of Appen i.e., Appen and Atos SE go up and down completely randomly.
Pair Corralation between Appen and Atos SE
Assuming the 90 days horizon Appen Limited is expected to generate 1.57 times more return on investment than Atos SE. However, Appen is 1.57 times more volatile than Atos SE. It trades about 0.2 of its potential returns per unit of risk. Atos SE is currently generating about -0.4 per unit of risk. If you would invest 99.00 in Appen Limited on August 28, 2024 and sell it today you would earn a total of 81.00 from holding Appen Limited or generate 81.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Appen Limited vs. Atos SE
Performance |
| Timeline |
| Appen Limited |
| Atos SE |
Appen and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Appen and Atos SE
The main advantage of trading using opposite Appen and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appen position performs unexpectedly, Atos SE 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 Atos SE will offset losses from the drop in Atos SE's long position.| Appen vs. Appen Limited | Appen vs. Direct Communication Solutions | Appen vs. Capgemini SE ADR | Appen vs. Quisitive Technology Solutions |
| Atos SE vs. Deveron Corp | Atos SE vs. Appen Limited | Atos SE vs. Atos Origin SA | Atos SE vs. Appen 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |