Correlation Between PFSweb and Atento SA
Can any of the company-specific risk be diversified away by investing in both PFSweb 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 PFSweb and Atento SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PFSweb Inc and Atento SA, you can compare the effects of market volatilities on PFSweb 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 PFSweb with a short position of Atento SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFSweb and Atento SA.
Diversification Opportunities for PFSweb and Atento SA
Very good diversification
The 3 months correlation between PFSweb and Atento is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PFSweb Inc and Atento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atento SA and PFSweb 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 PFSweb Inc 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 PFSweb i.e., PFSweb and Atento SA go up and down completely randomly.
Pair Corralation between PFSweb and Atento SA
If you would invest 47.00 in Atento SA on August 28, 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 | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PFSweb Inc vs. Atento SA
Performance |
| Timeline |
| PFSweb Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Atento SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PFSweb and Atento SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PFSweb and Atento SA
The main advantage of trading using opposite PFSweb and Atento SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFSweb 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.| PFSweb vs. Network 1 Technologies | PFSweb vs. Rentokil Initial PLC | PFSweb vs. Cass Information Systems | PFSweb vs. Maximus |
| 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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