Correlation Between ATEME SA and Chargeurs
Can any of the company-specific risk be diversified away by investing in both ATEME SA and Chargeurs 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 Chargeurs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATEME SA and Chargeurs SA, you can compare the effects of market volatilities on ATEME SA and Chargeurs 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 Chargeurs. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATEME SA and Chargeurs.
Diversification Opportunities for ATEME SA and Chargeurs
Pay attention - limited upside
The 3 months correlation between ATEME and Chargeurs is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding ATEME SA and Chargeurs SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chargeurs 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 Chargeurs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chargeurs SA has no effect on the direction of ATEME SA i.e., ATEME SA and Chargeurs go up and down completely randomly.
Pair Corralation between ATEME SA and Chargeurs
Assuming the 90 days trading horizon ATEME SA is expected to generate 2.02 times more return on investment than Chargeurs. However, ATEME SA is 2.02 times more volatile than Chargeurs SA. It trades about 0.07 of its potential returns per unit of risk. Chargeurs SA is currently generating about 0.1 per unit of risk. If you would invest 459.00 in ATEME SA on September 2, 2024 and sell it today you would earn a total of 20.00 from holding ATEME SA or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATEME SA vs. Chargeurs SA
Performance |
| Timeline |
| ATEME SA |
| Chargeurs SA |
ATEME SA and Chargeurs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATEME SA and Chargeurs
The main advantage of trading using opposite ATEME SA and Chargeurs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATEME SA position performs unexpectedly, Chargeurs 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 Chargeurs will offset losses from the drop in Chargeurs' 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 |
| Chargeurs vs. Derichebourg | Chargeurs vs. Trigano SA | Chargeurs vs. Rubis SCA | Chargeurs vs. BigBen Interactive |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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