Correlation Between Atos SE and Lhyfe SA
Can any of the company-specific risk be diversified away by investing in both Atos SE and Lhyfe SA 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 Atos SE and Lhyfe SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Lhyfe SA, you can compare the effects of market volatilities on Atos SE and Lhyfe SA 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 Atos SE with a short position of Lhyfe SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Lhyfe SA.
Diversification Opportunities for Atos SE and Lhyfe SA
Excellent diversification
The 3 months correlation between Atos and Lhyfe is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Lhyfe SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lhyfe SA and Atos SE 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 Atos SE are associated (or correlated) with Lhyfe SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lhyfe SA has no effect on the direction of Atos SE i.e., Atos SE and Lhyfe SA go up and down completely randomly.
Pair Corralation between Atos SE and Lhyfe SA
Assuming the 90 days trading horizon Atos SE is expected to generate 99.21 times more return on investment than Lhyfe SA. However, Atos SE is 99.21 times more volatile than Lhyfe SA. It trades about 0.24 of its potential returns per unit of risk. Lhyfe SA is currently generating about -0.37 per unit of risk. If you would invest 0.49 in Atos SE on August 31, 2024 and sell it today you would earn a total of 89.51 from holding Atos SE or generate 18267.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos SE vs. Lhyfe SA
Performance |
| Timeline |
| Atos SE |
| Lhyfe SA |
Atos SE and Lhyfe SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and Lhyfe SA
The main advantage of trading using opposite Atos SE and Lhyfe SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Lhyfe SA 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 Lhyfe SA will offset losses from the drop in Lhyfe SA's long position.The idea behind Atos SE and Lhyfe SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Lhyfe SA vs. Hydrogene De France | Lhyfe SA vs. Hydrogen Refueling Solutions | Lhyfe SA vs. Neoen SA | Lhyfe SA vs. Hopium SAS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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