Correlation Between Frontera and Atento SA
Can any of the company-specific risk be diversified away by investing in both Frontera and Atento SA 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 Frontera and Atento SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frontera Group and Atento SA, you can compare the effects of market volatilities on Frontera and Atento SA 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 Frontera with a short position of Atento SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frontera and Atento SA.
Diversification Opportunities for Frontera and Atento SA
Pay attention - limited upside
The 3 months correlation between Frontera and Atento is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Frontera Group and Atento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atento SA and Frontera 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 Frontera Group are associated (or correlated) with Atento SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atento SA has no effect on the direction of Frontera i.e., Frontera and Atento SA go up and down completely randomly.
Pair Corralation between Frontera and Atento SA
If you would invest 47.00 in Atento SA on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Atento SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Frontera Group vs. Atento SA
Performance |
| Timeline |
| Frontera Group |
| Atento SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Frontera and Atento SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frontera and Atento SA
The main advantage of trading using opposite Frontera and Atento SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frontera position performs unexpectedly, Atento SA 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 Atento SA will offset losses from the drop in Atento SA's long position.| Frontera vs. XCPCNL Business Services | Frontera vs. International Consolidated Companies | Frontera vs. Global Payments | Frontera vs. Mills Music Trust |
| Atento SA vs. SMX Public Limited | Atento SA vs. System1 | Atento SA vs. Lichen China Limited | Atento SA vs. Eastman Kodak Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges |