Correlation Between Appen and Atos Origin
Can any of the company-specific risk be diversified away by investing in both Appen and Atos Origin 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 Origin 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 Origin SA, you can compare the effects of market volatilities on Appen and Atos Origin 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 Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Appen and Atos Origin.
Diversification Opportunities for Appen and Atos Origin
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Appen and Atos is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Appen Limited and Atos Origin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos Origin SA 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 Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos Origin SA has no effect on the direction of Appen i.e., Appen and Atos Origin go up and down completely randomly.
Pair Corralation between Appen and Atos Origin
Assuming the 90 days horizon Appen Limited is expected to generate 1.3 times more return on investment than Atos Origin. However, Appen is 1.3 times more volatile than Atos Origin SA. It trades about 0.04 of its potential returns per unit of risk. Atos Origin SA is currently generating about -0.03 per unit of risk. If you would invest 206.00 in Appen Limited on August 24, 2024 and sell it today you would lose (26.00) from holding Appen Limited or give up 12.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Appen Limited vs. Atos Origin SA
Performance |
| Timeline |
| Appen Limited |
| Atos Origin SA |
Appen and Atos Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Appen and Atos Origin
The main advantage of trading using opposite Appen and Atos Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Appen position performs unexpectedly, Atos Origin 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 Origin will offset losses from the drop in Atos Origin's long position.| Appen vs. Appen Limited | Appen vs. Direct Communication Solutions | Appen vs. Capgemini SE ADR | Appen vs. Quisitive Technology Solutions |
| Atos Origin vs. Appen Limited | Atos Origin vs. Aurora Innovation | Atos Origin vs. Atos SE | Atos Origin vs. Deveron Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |