Correlation Between Science Applications and Atos Origin
Can any of the company-specific risk be diversified away by investing in both Science Applications and Atos Origin 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 Science Applications and Atos Origin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Science Applications International and Atos Origin SA, you can compare the effects of market volatilities on Science Applications and Atos Origin 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 Science Applications with a short position of Atos Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Science Applications and Atos Origin.
Diversification Opportunities for Science Applications and Atos Origin
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Science and Atos is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Science Applications Internati and Atos Origin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos Origin SA and Science Applications 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 Science Applications International are associated (or correlated) with Atos Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos Origin SA has no effect on the direction of Science Applications i.e., Science Applications and Atos Origin go up and down completely randomly.
Pair Corralation between Science Applications and Atos Origin
Given the investment horizon of 90 days Science Applications International is expected to under-perform the Atos Origin. But the stock apears to be less risky and, when comparing its historical volatility, Science Applications International is 2.32 times less risky than Atos Origin. The stock trades about -0.18 of its potential returns per unit of risk. The Atos Origin SA is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Atos Origin SA on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Atos Origin SA or generate 53.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Science Applications Internati vs. Atos Origin SA
Performance |
| Timeline |
| Science Applications |
| Atos Origin SA |
Science Applications and Atos Origin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Science Applications and Atos Origin
The main advantage of trading using opposite Science Applications and Atos Origin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Science Applications position performs unexpectedly, Atos Origin 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 Origin will offset losses from the drop in Atos Origin's long position.| Science Applications vs. FiscalNote Holdings | Science Applications vs. Innodata | Science Applications vs. Aurora Innovation | Science Applications vs. Conduent |
| Atos Origin vs. Appen Limited | Atos Origin vs. Aurora Innovation | Atos Origin vs. Atos SE | Atos Origin vs. Deveron Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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