Correlation Between Atento SA and Brambles
Can any of the company-specific risk be diversified away by investing in both Atento SA and Brambles 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 Brambles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atento SA and Brambles Ltd ADR, you can compare the effects of market volatilities on Atento SA and Brambles 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 Brambles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atento SA and Brambles.
Diversification Opportunities for Atento SA and Brambles
Modest diversification
The 3 months correlation between Atento and Brambles is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Atento SA and Brambles Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brambles ADR 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 Brambles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brambles ADR has no effect on the direction of Atento SA i.e., Atento SA and Brambles go up and down completely randomly.
Pair Corralation between Atento SA and Brambles
If you would invest 2,413 in Brambles Ltd ADR on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Brambles Ltd ADR or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Atento SA vs. Brambles Ltd ADR
Performance |
| Timeline |
| Atento SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brambles ADR |
Atento SA and Brambles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atento SA and Brambles
The main advantage of trading using opposite Atento SA and Brambles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atento SA position performs unexpectedly, Brambles 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 Brambles will offset losses from the drop in Brambles' long position.| Atento SA vs. SMX Public Limited | Atento SA vs. System1 | Atento SA vs. Lichen China Limited | Atento SA vs. Eastman Kodak Co |
| Brambles vs. Cintas | Brambles vs. Thomson Reuters Corp | Brambles vs. Global Payments | Brambles vs. Wolters Kluwer NV |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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