Correlation Between Fortinet and ATOSS Software
Can any of the company-specific risk be diversified away by investing in both Fortinet and ATOSS Software 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 Fortinet and ATOSS Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortinet and ATOSS Software SE, you can compare the effects of market volatilities on Fortinet and ATOSS Software 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 Fortinet with a short position of ATOSS Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortinet and ATOSS Software.
Diversification Opportunities for Fortinet and ATOSS Software
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fortinet and ATOSS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Fortinet and ATOSS Software SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS Software SE and Fortinet 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 Fortinet are associated (or correlated) with ATOSS Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS Software SE has no effect on the direction of Fortinet i.e., Fortinet and ATOSS Software go up and down completely randomly.
Pair Corralation between Fortinet and ATOSS Software
Assuming the 90 days horizon Fortinet is expected to generate 1.92 times more return on investment than ATOSS Software. However, Fortinet is 1.92 times more volatile than ATOSS Software SE. It trades about 0.35 of its potential returns per unit of risk. ATOSS Software SE is currently generating about 0.09 per unit of risk. If you would invest 7,199 in Fortinet on September 2, 2024 and sell it today you would earn a total of 1,835 from holding Fortinet or generate 25.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortinet vs. ATOSS Software SE
Performance |
| Timeline |
| Fortinet |
| ATOSS Software SE |
Fortinet and ATOSS Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortinet and ATOSS Software
The main advantage of trading using opposite Fortinet and ATOSS Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortinet position performs unexpectedly, ATOSS Software 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 ATOSS Software will offset losses from the drop in ATOSS Software's long position.| Fortinet vs. Synopsys | Fortinet vs. Superior Plus Corp | Fortinet vs. NMI Holdings | Fortinet vs. Origin Agritech |
| ATOSS Software vs. Virtus Investment Partners | ATOSS Software vs. EAT WELL INVESTMENT | ATOSS Software vs. QINGCI GAMES INC | ATOSS Software vs. ECHO INVESTMENT ZY |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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