Correlation Between Atos SE and Sysorex

Can any of the company-specific risk be diversified away by investing in both Atos SE and Sysorex 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 Atos SE and Sysorex into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Atos SE and Sysorex, you can compare the effects of market volatilities on Atos SE and Sysorex 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 Atos SE with a short position of Sysorex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Sysorex.

Diversification Opportunities for Atos SE and Sysorex

0.0

Correlation Coefficient

Atos SE  Sysorex

Pay attention - limited upside

The 3 months correlation between Atos and Sysorex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Sysorex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sysorex and Atos SE 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 Atos SE are associated (or correlated) with Sysorex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sysorex has no effect on the direction of Atos SE i.e., Atos SE and Sysorex go up and down completely randomly.

Pair Corralation between Atos SE and Sysorex

Assuming the 90 days horizon Atos SE is expected to generate 3.06 times more return on investment than Sysorex. However, Atos SE is 3.06 times more volatile than Sysorex. It trades about 0.37 of its potential returns per unit of risk. Sysorex is currently generating about 0.12 per unit of risk. If you would invest  3.54  in Atos SE on October 24, 2024 and sell it today you would lose (3.29) from holding Atos SE or give up 92.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.5%
Values	Daily Returns

Atos SE  vs.  Sysorex

Atos SE

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Atos SE are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Atos SE reported solid returns over the last few months and may actually be approaching a breakup point.

Sysorex

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sysorex has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Sysorex is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Atos SE and Sysorex

The main advantage of trading using opposite Atos SE and Sysorex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Sysorex 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 Sysorex will offset losses from the drop in Sysorex's long position.

The idea behind Atos SE and Sysorex 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.