Correlation Between Raytheon Technologies and ATMA Participacoes
Can any of the company-specific risk be diversified away by investing in both Raytheon Technologies and ATMA Participacoes 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 Raytheon Technologies and ATMA Participacoes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raytheon Technologies and ATMA Participacoes SA, you can compare the effects of market volatilities on Raytheon Technologies and ATMA Participacoes 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 Raytheon Technologies with a short position of ATMA Participacoes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raytheon Technologies and ATMA Participacoes.
Diversification Opportunities for Raytheon Technologies and ATMA Participacoes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Raytheon and ATMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Raytheon Technologies and ATMA Participacoes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMA Participacoes and Raytheon 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 Raytheon Technologies are associated (or correlated) with ATMA Participacoes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMA Participacoes has no effect on the direction of Raytheon Technologies i.e., Raytheon Technologies and ATMA Participacoes go up and down completely randomly.
Pair Corralation between Raytheon Technologies and ATMA Participacoes
If you would invest 0.00 in ATMA Participacoes SA on September 13, 2024 and sell it today you would earn a total of 0.00 from holding ATMA Participacoes SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Raytheon Technologies vs. ATMA Participacoes SA
Performance |
| Timeline |
| Raytheon Technologies |
| ATMA Participacoes |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Raytheon Technologies and ATMA Participacoes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raytheon Technologies and ATMA Participacoes
The main advantage of trading using opposite Raytheon Technologies and ATMA Participacoes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raytheon Technologies position performs unexpectedly, ATMA Participacoes 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 ATMA Participacoes will offset losses from the drop in ATMA Participacoes' long position.| Raytheon Technologies vs. Take Two Interactive Software | Raytheon Technologies vs. British American Tobacco | Raytheon Technologies vs. Delta Air Lines | Raytheon Technologies vs. Spotify Technology SA |
| ATMA Participacoes vs. Autohome | ATMA Participacoes vs. MAHLE Metal Leve | ATMA Participacoes vs. Healthpeak Properties | ATMA Participacoes vs. Iron Mountain Incorporated |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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