Correlation Between International Business and Atos SE
Can any of the company-specific risk be diversified away by investing in both International Business 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 International Business and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Business Machines and Atos SE, you can compare the effects of market volatilities on International Business 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 International Business with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and Atos SE.
Diversification Opportunities for International Business and Atos SE
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Atos is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and International Business 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 International Business Machines 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 International Business i.e., International Business and Atos SE go up and down completely randomly.
Pair Corralation between International Business and Atos SE
Assuming the 90 days trading horizon International Business is expected to generate 44.29 times less return on investment than Atos SE. But when comparing it to its historical volatility, International Business Machines is 57.37 times less risky than Atos SE. It trades about 0.1 of its potential returns per unit of risk. Atos SE is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16.00 in Atos SE on September 23, 2024 and sell it today you would lose (15.79) from holding Atos SE or give up 98.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Business Machine vs. Atos SE
Performance |
| Timeline |
| International Business |
| Atos SE |
International Business and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and Atos SE
The main advantage of trading using opposite International Business and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. Accenture plc | International Business vs. Infosys Limited | International Business vs. Cognizant Technology Solutions | International Business vs. AMADEUS IT GRP |
| Atos SE vs. Accenture plc | Atos SE vs. International Business Machines | Atos SE vs. Infosys Limited | Atos SE vs. Cognizant Technology Solutions |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |