Correlation Between Grupo Carso and ATOSS SOFTWARE

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Can any of the company-specific risk be diversified away by investing in both Grupo Carso and ATOSS SOFTWARE 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 Grupo Carso and ATOSS SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and ATOSS SOFTWARE, you can compare the effects of market volatilities on Grupo Carso and ATOSS SOFTWARE 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 Grupo Carso with a short position of ATOSS SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and ATOSS SOFTWARE.

Diversification Opportunities for Grupo Carso and ATOSS SOFTWARE

GrupoATOSSDiversified AwayGrupoATOSSDiversified Away100%
0.58
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Grupo and ATOSS is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and ATOSS SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS SOFTWARE and Grupo Carso 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 Grupo Carso SAB are associated (or correlated) with ATOSS SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS SOFTWARE has no effect on the direction of Grupo Carso i.e., Grupo Carso and ATOSS SOFTWARE go up and down completely randomly.

Pair Corralation between Grupo Carso and ATOSS SOFTWARE

Assuming the 90 days horizon Grupo Carso SAB is expected to generate 1.12 times more return on investment than ATOSS SOFTWARE. However, Grupo Carso is 1.12 times more volatile than ATOSS SOFTWARE. It trades about -0.04 of its potential returns per unit of risk. ATOSS SOFTWARE is currently generating about -0.12 per unit of risk. If you would invest  575.00  in Grupo Carso SAB on October 14, 2024 and sell it today you would lose (40.00) from holding Grupo Carso SAB or give up 6.96% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Grupo Carso SAB  vs.  ATOSS SOFTWARE

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -10-50510
JavaScript chart by amCharts 3.21.154GF AOF
       Timeline  
Grupo Carso SAB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Grupo Carso SAB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Grupo Carso is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan5.25.35.45.55.65.75.8
ATOSS SOFTWARE 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ATOSS SOFTWARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan110115120125130135140

Grupo Carso and ATOSS SOFTWARE Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.14-6.1-4.05-2.010.01.984.036.098.1410.19 0.020.040.060.08
JavaScript chart by amCharts 3.21.154GF AOF
       Returns  

Pair Trading with Grupo Carso and ATOSS SOFTWARE

The main advantage of trading using opposite Grupo Carso and ATOSS SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, ATOSS SOFTWARE 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 ATOSS SOFTWARE will offset losses from the drop in ATOSS SOFTWARE's long position.
The idea behind Grupo Carso SAB and ATOSS SOFTWARE 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.
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

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