Correlation Between AZZ Incorporated and Atento SA
Can any of the company-specific risk be diversified away by investing in both AZZ Incorporated and Atento SA 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 AZZ Incorporated and Atento SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AZZ Incorporated and Atento SA, you can compare the effects of market volatilities on AZZ Incorporated and Atento SA 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 AZZ Incorporated with a short position of Atento SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AZZ Incorporated and Atento SA.
Diversification Opportunities for AZZ Incorporated and Atento SA
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AZZ and Atento is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AZZ Incorporated and Atento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atento SA and AZZ Incorporated 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 AZZ Incorporated are associated (or correlated) with Atento SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atento SA has no effect on the direction of AZZ Incorporated i.e., AZZ Incorporated and Atento SA go up and down completely randomly.
Pair Corralation between AZZ Incorporated and Atento SA
If you would invest 7,807 in AZZ Incorporated on August 28, 2024 and sell it today you would earn a total of 1,726 from holding AZZ Incorporated or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
AZZ Incorporated vs. Atento SA
Performance |
| Timeline |
| AZZ Incorporated |
| Atento SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AZZ Incorporated and Atento SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AZZ Incorporated and Atento SA
The main advantage of trading using opposite AZZ Incorporated and Atento SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AZZ Incorporated position performs unexpectedly, Atento SA 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 Atento SA will offset losses from the drop in Atento SA's long position.| AZZ Incorporated vs. Maximus | AZZ Incorporated vs. ABM Industries Incorporated | AZZ Incorporated vs. CBIZ Inc | AZZ Incorporated vs. Cass Information Systems |
| Atento SA vs. SMX Public Limited | Atento SA vs. System1 | Atento SA vs. Lichen China Limited | Atento SA vs. Eastman Kodak Co |
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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