Correlation Between ATEME SA and Avenir Telecom
Can any of the company-specific risk be diversified away by investing in both ATEME SA and Avenir Telecom 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 ATEME SA and Avenir Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATEME SA and Avenir Telecom SA, you can compare the effects of market volatilities on ATEME SA and Avenir Telecom 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 ATEME SA with a short position of Avenir Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATEME SA and Avenir Telecom.
Diversification Opportunities for ATEME SA and Avenir Telecom
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATEME and Avenir is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ATEME SA and Avenir Telecom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avenir Telecom SA and ATEME SA 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 ATEME SA are associated (or correlated) with Avenir Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avenir Telecom SA has no effect on the direction of ATEME SA i.e., ATEME SA and Avenir Telecom go up and down completely randomly.
Pair Corralation between ATEME SA and Avenir Telecom
Assuming the 90 days trading horizon ATEME SA is expected to generate 1.29 times more return on investment than Avenir Telecom. However, ATEME SA is 1.29 times more volatile than Avenir Telecom SA. It trades about 0.09 of its potential returns per unit of risk. Avenir Telecom SA is currently generating about -0.22 per unit of risk. If you would invest 452.00 in ATEME SA on September 1, 2024 and sell it today you would earn a total of 27.00 from holding ATEME SA or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ATEME SA vs. Avenir Telecom SA
Performance |
| Timeline |
| ATEME SA |
| Avenir Telecom SA |
ATEME SA and Avenir Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATEME SA and Avenir Telecom
The main advantage of trading using opposite ATEME SA and Avenir Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATEME SA position performs unexpectedly, Avenir Telecom 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 Avenir Telecom will offset losses from the drop in Avenir Telecom's long position.| ATEME SA vs. Chargeurs SA | ATEME SA vs. Straumann Holding AG | ATEME SA vs. Manitou BF SA | ATEME SA vs. Amundi Index Solutions |
| Avenir Telecom vs. Acheter Louer | Avenir Telecom vs. Europlasma SA | Avenir Telecom vs. DBT SA | Avenir Telecom vs. Solocal Group SA |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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