Correlation Between ATMA Participaes and Wells Fargo
Can any of the company-specific risk be diversified away by investing in both ATMA Participaes and Wells Fargo 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 ATMA Participaes and Wells Fargo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATMA Participaes SA and Wells Fargo, you can compare the effects of market volatilities on ATMA Participaes and Wells Fargo 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 ATMA Participaes with a short position of Wells Fargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATMA Participaes and Wells Fargo.
Diversification Opportunities for ATMA Participaes and Wells Fargo
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATMA and Wells is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding ATMA Participaes SA and Wells Fargo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wells Fargo and ATMA Participaes 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 ATMA Participaes SA are associated (or correlated) with Wells Fargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wells Fargo has no effect on the direction of ATMA Participaes i.e., ATMA Participaes and Wells Fargo go up and down completely randomly.
Pair Corralation between ATMA Participaes and Wells Fargo
Assuming the 90 days trading horizon ATMA Participaes SA is expected to under-perform the Wells Fargo. In addition to that, ATMA Participaes is 1.49 times more volatile than Wells Fargo. It trades about -0.15 of its total potential returns per unit of risk. Wells Fargo is currently generating about 0.12 per unit of volatility. If you would invest 7,854 in Wells Fargo on September 19, 2024 and sell it today you would earn a total of 2,971 from holding Wells Fargo or generate 37.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
ATMA Participaes SA vs. Wells Fargo
Performance |
| Timeline |
| ATMA Participaes |
| Wells Fargo |
ATMA Participaes and Wells Fargo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATMA Participaes and Wells Fargo
The main advantage of trading using opposite ATMA Participaes and Wells Fargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATMA Participaes position performs unexpectedly, Wells Fargo 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 Wells Fargo will offset losses from the drop in Wells Fargo's long position.| ATMA Participaes vs. Copart Inc | ATMA Participaes vs. Infracommerce CXaaS SA | ATMA Participaes vs. OceanPact Servios Martimos |
| Wells Fargo vs. HSBC Holdings plc | Wells Fargo vs. Barclays PLC | Wells Fargo vs. BTG Pactual Logstica | Wells Fargo vs. Plano Plano Desenvolvimento |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |