Correlation Between Capgemini and Atos SE
Can any of the company-specific risk be diversified away by investing in both Capgemini 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 Capgemini and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capgemini SE and Atos SE, you can compare the effects of market volatilities on Capgemini 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 Capgemini with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capgemini and Atos SE.
Diversification Opportunities for Capgemini and Atos SE
Excellent diversification
The 3 months correlation between Capgemini and Atos is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Capgemini 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 Capgemini SE 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 Capgemini i.e., Capgemini and Atos SE go up and down completely randomly.
Pair Corralation between Capgemini and Atos SE
Assuming the 90 days trading horizon Capgemini SE is expected to under-perform the Atos SE. But the stock apears to be less risky and, when comparing its historical volatility, Capgemini SE is 53.36 times less risky than Atos SE. The stock trades about -0.14 of its potential returns per unit of risk. The Atos SE is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1.48 in Atos SE on August 24, 2024 and sell it today you would earn a total of 14.52 from holding Atos SE or generate 981.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capgemini SE vs. Atos SE
Performance |
| Timeline |
| Capgemini SE |
| Atos SE |
Capgemini and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capgemini and Atos SE
The main advantage of trading using opposite Capgemini and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capgemini 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.| Capgemini vs. Atos SE | Capgemini vs. Compagnie de Saint Gobain | Capgemini vs. Pernod Ricard SA | Capgemini vs. Bouygues SA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |