Correlation Between AMREP and Atos SE
Can any of the company-specific risk be diversified away by investing in both AMREP and Atos SE 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 AMREP and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMREP and Atos SE, you can compare the effects of market volatilities on AMREP and Atos SE 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 AMREP with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMREP and Atos SE.
Diversification Opportunities for AMREP and Atos SE
Very good diversification
The 3 months correlation between AMREP and Atos is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AMREP and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and AMREP 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 AMREP are associated (or correlated) with Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of AMREP i.e., AMREP and Atos SE go up and down completely randomly.
Pair Corralation between AMREP and Atos SE
Considering the 90-day investment horizon AMREP is expected to generate 5.8 times less return on investment than Atos SE. But when comparing it to its historical volatility, AMREP is 12.14 times less risky than Atos SE. It trades about 0.13 of its potential returns per unit of risk. Atos SE is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 127.00 in Atos SE on September 5, 2024 and sell it today you would lose (49.00) from holding Atos SE or give up 38.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
AMREP vs. Atos SE
Performance |
| Timeline |
| AMREP |
| Atos SE |
AMREP and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMREP and Atos SE
The main advantage of trading using opposite AMREP and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMREP position performs unexpectedly, Atos SE 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 Atos SE will offset losses from the drop in Atos SE's long position.The idea behind AMREP and Atos SE 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.| Atos SE vs. Global Develpmts | Atos SE vs. Parsons Corp | Atos SE vs. GBT Technologies | Atos SE vs. Appen Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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