Correlation Between Brambles and Atento SA
Can any of the company-specific risk be diversified away by investing in both Brambles 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 Brambles and Atento SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brambles Ltd ADR and Atento SA, you can compare the effects of market volatilities on Brambles 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 Brambles with a short position of Atento SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brambles and Atento SA.
Diversification Opportunities for Brambles and Atento SA
Modest diversification
The 3 months correlation between Brambles and Atento is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Brambles Ltd ADR and Atento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atento SA and Brambles 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 Brambles Ltd ADR 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 Brambles i.e., Brambles and Atento SA go up and down completely randomly.
Pair Corralation between Brambles and Atento SA
If you would invest 2,413 in Brambles Ltd ADR on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Brambles Ltd ADR or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Brambles Ltd ADR vs. Atento SA
Performance |
| Timeline |
| Brambles ADR |
| Atento SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Brambles and Atento SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brambles and Atento SA
The main advantage of trading using opposite Brambles and Atento SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brambles 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.| Brambles vs. Cintas | Brambles vs. Thomson Reuters Corp | Brambles vs. Global Payments | Brambles vs. Wolters Kluwer NV |
| 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |