Correlation Between Tesla and ATMA Participaes
Can any of the company-specific risk be diversified away by investing in both Tesla and ATMA Participaes 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 Tesla and ATMA Participaes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tesla Inc and ATMA Participaes SA, you can compare the effects of market volatilities on Tesla and ATMA Participaes 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 Tesla with a short position of ATMA Participaes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tesla and ATMA Participaes.
Diversification Opportunities for Tesla and ATMA Participaes
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tesla and ATMA is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Tesla Inc and ATMA Participaes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATMA Participaes and Tesla 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 Tesla Inc are associated (or correlated) with ATMA Participaes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATMA Participaes has no effect on the direction of Tesla i.e., Tesla and ATMA Participaes go up and down completely randomly.
Pair Corralation between Tesla and ATMA Participaes
Assuming the 90 days trading horizon Tesla Inc is expected to under-perform the ATMA Participaes. In addition to that, Tesla is 1.24 times more volatile than ATMA Participaes SA. It trades about -0.08 of its total potential returns per unit of risk. ATMA Participaes SA is currently generating about 0.14 per unit of volatility. If you would invest 119.00 in ATMA Participaes SA on October 14, 2024 and sell it today you would earn a total of 11.00 from holding ATMA Participaes SA or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tesla Inc vs. ATMA Participaes SA
Performance |
| Timeline |
| Tesla Inc |
| ATMA Participaes |
Tesla and ATMA Participaes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tesla and ATMA Participaes
The main advantage of trading using opposite Tesla and ATMA Participaes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tesla position performs unexpectedly, ATMA Participaes 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 Participaes will offset losses from the drop in ATMA Participaes' long position.| Tesla vs. Bio Techne | Tesla vs. DENTSPLY SIRONA | Tesla vs. United States Steel | Tesla vs. Check Point Software |
| ATMA Participaes vs. Mliuz SA | ATMA Participaes vs. Lojas Quero Quero SA | ATMA Participaes vs. Enjoei SA | ATMA Participaes vs. Energisa 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |