Correlation Between GBT Technologies and Atos SE
Can any of the company-specific risk be diversified away by investing in both GBT Technologies 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 GBT Technologies and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GBT Technologies and Atos SE, you can compare the effects of market volatilities on GBT Technologies 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 GBT Technologies with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GBT Technologies and Atos SE.
Diversification Opportunities for GBT Technologies and Atos SE
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between GBT and Atos is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding GBT Technologies and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and GBT Technologies 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 GBT Technologies 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 GBT Technologies i.e., GBT Technologies and Atos SE go up and down completely randomly.
Pair Corralation between GBT Technologies and Atos SE
Given the investment horizon of 90 days GBT Technologies is expected to generate 20.28 times more return on investment than Atos SE. However, GBT Technologies is 20.28 times more volatile than Atos SE. It trades about 0.16 of its potential returns per unit of risk. Atos SE is currently generating about -0.24 per unit of risk. If you would invest 0.01 in GBT Technologies on August 28, 2024 and sell it today you would earn a total of 0.00 from holding GBT Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GBT Technologies vs. Atos SE
Performance |
| Timeline |
| GBT Technologies |
| Atos SE |
GBT Technologies and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GBT Technologies and Atos SE
The main advantage of trading using opposite GBT Technologies and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GBT Technologies 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.| GBT Technologies vs. SEATech Ventures Corp | GBT Technologies vs. Alternet Systems | GBT Technologies vs. Crypto Co | GBT Technologies vs. Xalles Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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