Correlation Between Atos SE and GRUPO ECOENER
Can any of the company-specific risk be diversified away by investing in both Atos SE and GRUPO ECOENER 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 GRUPO ECOENER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and GRUPO ECOENER EO, you can compare the effects of market volatilities on Atos SE and GRUPO ECOENER 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 GRUPO ECOENER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and GRUPO ECOENER.
Diversification Opportunities for Atos SE and GRUPO ECOENER
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atos and GRUPO is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and GRUPO ECOENER EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO ECOENER EO 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 GRUPO ECOENER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO ECOENER EO has no effect on the direction of Atos SE i.e., Atos SE and GRUPO ECOENER go up and down completely randomly.
Pair Corralation between Atos SE and GRUPO ECOENER
Assuming the 90 days horizon Atos SE is expected to generate 15.37 times more return on investment than GRUPO ECOENER. However, Atos SE is 15.37 times more volatile than GRUPO ECOENER EO. It trades about 0.12 of its potential returns per unit of risk. GRUPO ECOENER EO is currently generating about 0.52 per unit of risk. If you would invest 0.18 in Atos SE on October 12, 2024 and sell it today you would earn a total of 0.03 from holding Atos SE or generate 16.67% 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. GRUPO ECOENER EO
Performance |
| Timeline |
| Atos SE |
| GRUPO ECOENER EO |
Atos SE and GRUPO ECOENER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and GRUPO ECOENER
The main advantage of trading using opposite Atos SE and GRUPO ECOENER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, GRUPO ECOENER 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 GRUPO ECOENER will offset losses from the drop in GRUPO ECOENER's long position.| Atos SE vs. HK Electric Investments | Atos SE vs. INTERSHOP Communications Aktiengesellschaft | Atos SE vs. Japan Asia Investment | Atos SE vs. PennantPark Investment |
| GRUPO ECOENER vs. HANOVER INSURANCE | GRUPO ECOENER vs. MidCap Financial Investment | GRUPO ECOENER vs. ECHO INVESTMENT ZY | GRUPO ECOENER vs. Vienna Insurance Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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