Correlation Between Atos SE and Daimler Truck

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Atos SE and Daimler Truck 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 Daimler Truck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Daimler Truck Holding, you can compare the effects of market volatilities on Atos SE and Daimler Truck 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 Daimler Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Daimler Truck.

Diversification Opportunities for Atos SE and Daimler Truck

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between Atos and Daimler is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Daimler Truck Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daimler Truck Holding 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 Daimler Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daimler Truck Holding has no effect on the direction of Atos SE i.e., Atos SE and Daimler Truck go up and down completely randomly.

Pair Corralation between Atos SE and Daimler Truck

Assuming the 90 days horizon Atos SE is expected to generate 28.51 times more return on investment than Daimler Truck. However, Atos SE is 28.51 times more volatile than Daimler Truck Holding. It trades about 0.03 of its potential returns per unit of risk. Daimler Truck Holding is currently generating about 0.05 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 Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Atos SE  vs.  Daimler Truck Holding

 Performance 
       Timeline  
Atos SE 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Atos SE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Atos SE reported solid returns over the last few months and may actually be approaching a breakup point.
Daimler Truck Holding 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Daimler Truck Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Daimler Truck exhibited solid returns over the last few months and may actually be approaching a breakup point.

Atos SE and Daimler Truck Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Atos SE and Daimler Truck

The main advantage of trading using opposite Atos SE and Daimler Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Daimler Truck 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 Daimler Truck will offset losses from the drop in Daimler Truck's long position.
The idea behind Atos SE and Daimler Truck Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Fundamental Analysis
View fundamental data based on most recent published financial statements