Correlation Between Atomera and Atacado SA
Can any of the company-specific risk be diversified away by investing in both Atomera and Atacado 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 Atomera and Atacado SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atomera and Atacado SA, you can compare the effects of market volatilities on Atomera and Atacado 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 Atomera with a short position of Atacado SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atomera and Atacado SA.
Diversification Opportunities for Atomera and Atacado SA
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atomera and Atacado is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Atomera and Atacado SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atacado SA and Atomera 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 Atomera are associated (or correlated) with Atacado SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atacado SA has no effect on the direction of Atomera i.e., Atomera and Atacado SA go up and down completely randomly.
Pair Corralation between Atomera and Atacado SA
Given the investment horizon of 90 days Atomera is expected to generate 89.13 times more return on investment than Atacado SA. However, Atomera is 89.13 times more volatile than Atacado SA. It trades about 0.02 of its potential returns per unit of risk. Atacado SA is currently generating about 0.14 per unit of risk. If you would invest 764.00 in Atomera on September 3, 2024 and sell it today you would lose (146.00) from holding Atomera or give up 19.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 28.89% |
| Values | Daily Returns |
Atomera vs. Atacado SA
Performance |
| Timeline |
| Atomera |
| Atacado SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atomera and Atacado SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atomera and Atacado SA
The main advantage of trading using opposite Atomera and Atacado SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atomera position performs unexpectedly, Atacado 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 Atacado SA will offset losses from the drop in Atacado SA's long position.| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
| Atacado SA vs. Anheuser Busch Inbev | Atacado SA vs. Southwest Airlines | Atacado SA vs. Volaris | Atacado SA vs. Celsius Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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