Correlation Between Atos SE and AlzChem Group
Can any of the company-specific risk be diversified away by investing in both Atos SE and AlzChem Group 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 AlzChem Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and AlzChem Group AG, you can compare the effects of market volatilities on Atos SE and AlzChem Group 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 AlzChem Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and AlzChem Group.
Diversification Opportunities for Atos SE and AlzChem Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atos and AlzChem is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and AlzChem Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlzChem Group AG 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 AlzChem Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlzChem Group AG has no effect on the direction of Atos SE i.e., Atos SE and AlzChem Group go up and down completely randomly.
Pair Corralation between Atos SE and AlzChem Group
Assuming the 90 days horizon Atos SE is expected to generate 19.45 times more return on investment than AlzChem Group. However, Atos SE is 19.45 times more volatile than AlzChem Group AG. It trades about 0.03 of its potential returns per unit of risk. AlzChem Group AG is currently generating about 0.11 per unit of risk. If you would invest 1,074 in Atos SE on September 23, 2024 and sell it today you would lose (1,074) from holding Atos SE or give up 99.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos SE vs. AlzChem Group AG
Performance |
| Timeline |
| Atos SE |
| AlzChem Group AG |
Atos SE and AlzChem Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and AlzChem Group
The main advantage of trading using opposite Atos SE and AlzChem Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, AlzChem Group 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 AlzChem Group will offset losses from the drop in AlzChem Group's long position.| Atos SE vs. Accenture plc | Atos SE vs. International Business Machines | Atos SE vs. Infosys Limited | Atos SE vs. Cognizant Technology Solutions |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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