Correlation Between Atento SA and ADM Endeavors
Can any of the company-specific risk be diversified away by investing in both Atento SA and ADM Endeavors 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 Atento SA and ADM Endeavors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atento SA and ADM Endeavors, you can compare the effects of market volatilities on Atento SA and ADM Endeavors 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 Atento SA with a short position of ADM Endeavors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atento SA and ADM Endeavors.
Diversification Opportunities for Atento SA and ADM Endeavors
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Atento and ADM is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Atento SA and ADM Endeavors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADM Endeavors and Atento 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 Atento SA are associated (or correlated) with ADM Endeavors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADM Endeavors has no effect on the direction of Atento SA i.e., Atento SA and ADM Endeavors go up and down completely randomly.
Pair Corralation between Atento SA and ADM Endeavors
If you would invest 47.00 in Atento SA on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Atento SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Atento SA vs. ADM Endeavors
Performance |
| Timeline |
| Atento SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ADM Endeavors |
Atento SA and ADM Endeavors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atento SA and ADM Endeavors
The main advantage of trading using opposite Atento SA and ADM Endeavors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atento SA position performs unexpectedly, ADM Endeavors 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 ADM Endeavors will offset losses from the drop in ADM Endeavors' long position.| Atento SA vs. SMX Public Limited | Atento SA vs. System1 | Atento SA vs. Lichen China Limited | Atento SA vs. Eastman Kodak Co |
| ADM Endeavors vs. Cintas | ADM Endeavors vs. Thomson Reuters Corp | ADM Endeavors vs. Global Payments | ADM Endeavors vs. RB Global |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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