Correlation Between Atos SE and Easy Software
Can any of the company-specific risk be diversified away by investing in both Atos SE and Easy Software 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 Easy Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Easy Software AG, you can compare the effects of market volatilities on Atos SE and Easy Software 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 Easy Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Easy Software.
Diversification Opportunities for Atos SE and Easy Software
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atos and Easy is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software 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 Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of Atos SE i.e., Atos SE and Easy Software go up and down completely randomly.
Pair Corralation between Atos SE and Easy Software
Assuming the 90 days horizon Atos SE is expected to under-perform the Easy Software. In addition to that, Atos SE is 1.5 times more volatile than Easy Software AG. It trades about -0.18 of its total potential returns per unit of risk. Easy Software AG is currently generating about -0.06 per unit of volatility. If you would invest 1,840 in Easy Software AG on October 26, 2024 and sell it today you would lose (90.00) from holding Easy Software AG or give up 4.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atos SE vs. Easy Software AG
Performance |
| Timeline |
| Atos SE |
| Easy Software AG |
Atos SE and Easy Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atos SE and Easy Software
The main advantage of trading using opposite Atos SE and Easy Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Easy Software 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 Easy Software will offset losses from the drop in Easy Software's long position.| Atos SE vs. Easy Software AG | Atos SE vs. betterU Education Corp | Atos SE vs. Playtech plc | Atos SE vs. Agilent Technologies |
| Easy Software vs. Salesforce | Easy Software vs. Uber Technologies | Easy Software vs. PagerDuty | Easy Software vs. Rocket Internet SE |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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