Correlation Between Nice Information and ATON

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nice Information and ATON 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 Nice Information and ATON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nice Information Telecommunication and ATON Inc, you can compare the effects of market volatilities on Nice Information and ATON 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 Nice Information with a short position of ATON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nice Information and ATON.

Diversification Opportunities for Nice Information and ATON

NiceATONDiversified AwayNiceATONDiversified Away100%
-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between Nice and ATON is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Nice Information Telecommunica and ATON Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATON Inc and Nice Information 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 Nice Information Telecommunication are associated (or correlated) with ATON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATON Inc has no effect on the direction of Nice Information i.e., Nice Information and ATON go up and down completely randomly.

Pair Corralation between Nice Information and ATON

Assuming the 90 days trading horizon Nice Information is expected to generate 7.8 times less return on investment than ATON. But when comparing it to its historical volatility, Nice Information Telecommunication is 2.06 times less risky than ATON. It trades about 0.01 of its potential returns per unit of risk. ATON Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  626,000  in ATON Inc on November 30, 2024 and sell it today you would earn a total of  4,000  from holding ATON Inc or generate 0.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Nice Information Telecommunica  vs.  ATON Inc

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -20-10010203040
JavaScript chart by amCharts 3.21.15036800 158430
       Timeline  
Nice Information Tel 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Nice Information Telecommunication has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Nice Information is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb17,00017,50018,00018,50019,000
ATON Inc 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ATON Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, ATON sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb5,0006,0007,0008,0009,000

Nice Information and ATON Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-2.05-1.55-1.05-0.55-0.060.390.891.391.892.39 0.050.100.150.200.25
JavaScript chart by amCharts 3.21.15036800 158430
       Returns  

Pair Trading with Nice Information and ATON

The main advantage of trading using opposite Nice Information and ATON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nice Information position performs unexpectedly, ATON 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 ATON will offset losses from the drop in ATON's long position.
The idea behind Nice Information Telecommunication and ATON Inc 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.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Commodity Directory
Find actively traded commodities issued by global exchanges
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments