Correlation Between Formula Systems and Atos SE
Can any of the company-specific risk be diversified away by investing in both Formula Systems 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 Formula Systems and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Formula Systems 1985 and Atos SE, you can compare the effects of market volatilities on Formula Systems 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 Formula Systems with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Formula Systems and Atos SE.
Diversification Opportunities for Formula Systems and Atos SE
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Formula and Atos is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Formula Systems 1985 and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Formula Systems 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 Formula Systems 1985 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 Formula Systems i.e., Formula Systems and Atos SE go up and down completely randomly.
Pair Corralation between Formula Systems and Atos SE
Assuming the 90 days horizon Formula Systems 1985 is expected to under-perform the Atos SE. But the stock apears to be less risky and, when comparing its historical volatility, Formula Systems 1985 is 5.82 times less risky than Atos SE. The stock trades about -0.2 of its potential returns per unit of risk. The Atos SE is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 0.21 in Atos SE on October 15, 2024 and sell it today you would earn a total of 0.05 from holding Atos SE or generate 23.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Formula Systems 1985 vs. Atos SE
Performance |
| Timeline |
| Formula Systems 1985 |
| Atos SE |
Formula Systems and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Formula Systems and Atos SE
The main advantage of trading using opposite Formula Systems and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Formula Systems 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.| Formula Systems vs. CSP Inc | Formula Systems vs. Nayax | Formula Systems vs. Information Services Group | Formula Systems vs. The Hackett Group |
| 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |