Correlation Between CSE Global and Atos SE
Can any of the company-specific risk be diversified away by investing in both CSE Global 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 CSE Global and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSE Global Limited and Atos SE, you can compare the effects of market volatilities on CSE Global 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 CSE Global with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSE Global and Atos SE.
Diversification Opportunities for CSE Global and Atos SE
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSE and Atos is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding CSE Global Limited and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and CSE Global 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 CSE Global Limited 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 CSE Global i.e., CSE Global and Atos SE go up and down completely randomly.
Pair Corralation between CSE Global and Atos SE
Assuming the 90 days horizon CSE Global Limited is expected to under-perform the Atos SE. But the pink sheet apears to be less risky and, when comparing its historical volatility, CSE Global Limited is 24.14 times less risky than Atos SE. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Atos SE is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 87.00 in Atos SE on August 30, 2024 and sell it today you would earn a total of 21.00 from holding Atos SE or generate 24.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSE Global Limited vs. Atos SE
Performance |
| Timeline |
| CSE Global Limited |
| Atos SE |
CSE Global and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSE Global and Atos SE
The main advantage of trading using opposite CSE Global and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSE Global 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.| CSE Global vs. Appen Limited | CSE Global vs. Appen Limited | CSE Global vs. Deveron Corp | CSE Global vs. Capgemini SE ADR |
| Atos SE vs. Deveron Corp | Atos SE vs. Appen Limited | Atos SE vs. Atos Origin SA | Atos SE vs. Appen 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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