Correlation Between Nacon Sa and Atari SA
Can any of the company-specific risk be diversified away by investing in both Nacon Sa and Atari 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 Nacon Sa and Atari SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nacon Sa and Atari SA, you can compare the effects of market volatilities on Nacon Sa and Atari 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 Nacon Sa with a short position of Atari SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nacon Sa and Atari SA.
Diversification Opportunities for Nacon Sa and Atari SA
Significant diversification
The 3 months correlation between Nacon and Atari is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nacon Sa and Atari SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atari SA and Nacon Sa 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 Nacon Sa are associated (or correlated) with Atari SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atari SA has no effect on the direction of Nacon Sa i.e., Nacon Sa and Atari SA go up and down completely randomly.
Pair Corralation between Nacon Sa and Atari SA
Assuming the 90 days trading horizon Nacon Sa is expected to under-perform the Atari SA. But the stock apears to be less risky and, when comparing its historical volatility, Nacon Sa is 1.12 times less risky than Atari SA. The stock trades about -0.07 of its potential returns per unit of risk. The Atari SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Atari SA on November 2, 2024 and sell it today you would lose (1.00) from holding Atari SA or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nacon Sa vs. Atari SA
Performance |
| Timeline |
| Nacon Sa |
| Atari SA |
Nacon Sa and Atari SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nacon Sa and Atari SA
The main advantage of trading using opposite Nacon Sa and Atari SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nacon Sa position performs unexpectedly, Atari 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 Atari SA will offset losses from the drop in Atari SA's long position.| Nacon Sa vs. BigBen Interactive | Nacon Sa vs. Neoen SA | Nacon Sa vs. Solutions 30 SE | Nacon Sa vs. Voltalia SA |
| Atari SA vs. Nacon Sa | Atari SA vs. Solutions 30 SE | Atari SA vs. OVH Groupe SAS | Atari SA vs. GECI International SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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