Correlation Between Team and Atento SA
Can any of the company-specific risk be diversified away by investing in both Team 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 Team and Atento SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Team Inc and Atento SA, you can compare the effects of market volatilities on Team 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 Team with a short position of Atento SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Team and Atento SA.
Diversification Opportunities for Team and Atento SA
Modest diversification
The 3 months correlation between Team and Atento is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Team Inc and Atento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atento SA and Team 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 Team 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 Team i.e., Team and Atento SA go up and down completely randomly.
Pair Corralation between Team and Atento SA
If you would invest 47.00 in Atento SA on August 24, 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 Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Team Inc vs. Atento SA
Performance |
| Timeline |
| Team Inc |
| Atento SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Team and Atento SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Team and Atento SA
The main advantage of trading using opposite Team and Atento SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Team 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.The idea behind Team Inc and Atento SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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