Correlation Between Lichen China and Atento SA
Can any of the company-specific risk be diversified away by investing in both Lichen China 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 Lichen China and Atento SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lichen China Limited and Atento SA, you can compare the effects of market volatilities on Lichen China 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 Lichen China with a short position of Atento SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lichen China and Atento SA.
Diversification Opportunities for Lichen China and Atento SA
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lichen and Atento is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lichen China Limited and Atento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atento SA and Lichen China 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 Lichen China Limited 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 Lichen China i.e., Lichen China and Atento SA go up and down completely randomly.
Pair Corralation between Lichen China and Atento SA
If you would invest 179.00 in Lichen China Limited on August 24, 2024 and sell it today you would earn a total of 30.00 from holding Lichen China Limited or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Lichen China Limited vs. Atento SA
Performance |
| Timeline |
| Lichen China Limited |
| Atento SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lichen China and Atento SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lichen China and Atento SA
The main advantage of trading using opposite Lichen China and Atento SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lichen China 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.| Lichen China vs. First Advantage Corp | Lichen China vs. Discount Print USA | Lichen China vs. Cass Information Systems | Lichen China vs. Civeo Corp |
| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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