Correlation Between Dow Jones and Atos SE
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Atos SE, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Atos SE.
Diversification Opportunities for Dow Jones and Atos SE
Good diversification
The 3 months correlation between Dow and Atos is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and Atos SE go up and down completely randomly.
Pair Corralation between Dow Jones and Atos SE
Assuming the 90 days trading horizon Dow Jones is expected to generate 28.93 times less return on investment than Atos SE. But when comparing it to its historical volatility, Dow Jones Industrial is 66.93 times less risky than Atos SE. It trades about 0.07 of its potential returns per unit of risk. Atos SE is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,214 in Atos SE on October 12, 2024 and sell it today you would lose (1,214) from holding Atos SE or give up 99.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Dow Jones Industrial vs. Atos SE
Performance |
| Timeline |
Dow Jones and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Atos SE
Pair trading matchups for Atos SE
Pair Trading with Dow Jones and Atos SE
The main advantage of trading using opposite Dow Jones and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Lululemon Athletica | Dow Jones vs. Vistra Energy Corp | Dow Jones vs. The Gap, | Dow Jones vs. Pool Corporation |
| Atos SE vs. COSMOSTEEL HLDGS | Atos SE vs. RELIANCE STEEL AL | Atos SE vs. USWE SPORTS AB | Atos SE vs. TOMBADOR IRON LTD |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |