Correlation Between Coty and Atlas Air
Can any of the company-specific risk be diversified away by investing in both Coty and Atlas Air 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 Coty and Atlas Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coty Inc and Atlas Air Worldwide, you can compare the effects of market volatilities on Coty and Atlas Air 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 Coty with a short position of Atlas Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coty and Atlas Air.
Diversification Opportunities for Coty and Atlas Air
Pay attention - limited upside
The 3 months correlation between Coty and Atlas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coty Inc and Atlas Air Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Air Worldwide and Coty 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 Coty Inc are associated (or correlated) with Atlas Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Air Worldwide has no effect on the direction of Coty i.e., Coty and Atlas Air go up and down completely randomly.
Pair Corralation between Coty and Atlas Air
If you would invest 10,248 in Atlas Air Worldwide on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Atlas Air Worldwide or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Coty Inc vs. Atlas Air Worldwide
Performance |
| Timeline |
| Coty Inc |
| Atlas Air Worldwide |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coty and Atlas Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coty and Atlas Air
The main advantage of trading using opposite Coty and Atlas Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coty position performs unexpectedly, Atlas Air 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 Atlas Air will offset losses from the drop in Atlas Air's long position.The idea behind Coty Inc and Atlas Air Worldwide 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.| Atlas Air vs. Teradyne | Atlas Air vs. Analog Devices | Atlas Air vs. Beauty Health Co | Atlas Air vs. Raytech Holding 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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