Correlation Between Atos SE and Worldline
Can any of the company-specific risk be diversified away by investing in both Atos SE and Worldline 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 Worldline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Worldline SA, you can compare the effects of market volatilities on Atos SE and Worldline 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 Worldline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Worldline.
Diversification Opportunities for Atos SE and Worldline
Good diversification
The 3 months correlation between Atos and Worldline is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Worldline SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldline 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 Worldline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldline SA has no effect on the direction of Atos SE i.e., Atos SE and Worldline go up and down completely randomly.
Pair Corralation between Atos SE and Worldline
Assuming the 90 days trading horizon Atos SE is expected to generate 72.13 times more return on investment than Worldline. However, Atos SE is 72.13 times more volatile than Worldline SA. It trades about 0.22 of its potential returns per unit of risk. Worldline SA is currently generating about 0.04 per unit of risk. If you would invest 0.52 in Atos SE on August 27, 2024 and sell it today you would earn a total of 30.48 from holding Atos SE or generate 5861.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos SE vs. Worldline SA
Performance |
| Timeline |
| Atos SE |
| Worldline SA |
Atos SE and Worldline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and Worldline
The main advantage of trading using opposite Atos SE and Worldline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Worldline 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 Worldline will offset losses from the drop in Worldline's long position.The idea behind Atos SE and Worldline 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.| Worldline vs. Sartorius Stedim Biotech | Worldline vs. Lectra SA | Worldline vs. Teleperformance SE | Worldline vs. Trigano 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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