Correlation Between BrightView Holdings and Atento SA
Can any of the company-specific risk be diversified away by investing in both BrightView Holdings 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 BrightView Holdings and Atento SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BrightView Holdings and Atento SA, you can compare the effects of market volatilities on BrightView Holdings 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 BrightView Holdings with a short position of Atento SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BrightView Holdings and Atento SA.
Diversification Opportunities for BrightView Holdings and Atento SA
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BrightView and Atento is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding BrightView Holdings and Atento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atento SA and BrightView Holdings 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 BrightView Holdings 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 BrightView Holdings i.e., BrightView Holdings and Atento SA go up and down completely randomly.
Pair Corralation between BrightView Holdings and Atento SA
If you would invest 1,684 in BrightView Holdings on September 4, 2024 and sell it today you would earn a total of 49.00 from holding BrightView Holdings or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
BrightView Holdings vs. Atento SA
Performance |
| Timeline |
| BrightView Holdings |
| Atento SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BrightView Holdings and Atento SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BrightView Holdings and Atento SA
The main advantage of trading using opposite BrightView Holdings and Atento SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BrightView Holdings 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.| BrightView Holdings vs. CRA International | BrightView Holdings vs. ICF International | BrightView Holdings vs. Forrester Research | BrightView Holdings vs. Huron Consulting Group |
| 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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