Correlation Between Atos Origin and CompX International

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

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

Diversification Opportunities for Atos Origin and CompX International

0.53

Correlation Coefficient

Atos Origin  CompX International

Very weak diversification

The 3 months correlation between Atos and CompX is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and CompX International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompX International and Atos Origin 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 Origin SA are associated (or correlated) with CompX International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompX International has no effect on the direction of Atos Origin i.e., Atos Origin and CompX International go up and down completely randomly.

Pair Corralation between Atos Origin and CompX International

Assuming the 90 days horizon Atos Origin SA is expected to under-perform the CompX International. In addition to that, Atos Origin is 4.26 times more volatile than CompX International. It trades about -0.29 of its total potential returns per unit of risk. CompX International is currently generating about -0.1 per unit of volatility. If you would invest  2,628  in CompX International on December 27, 2024 and sell it today you would lose (456.00) from holding CompX International or give up 17.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Atos Origin SA  vs.  CompX International

Atos Origin SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atos Origin SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

CompX International

Risk-Adjusted Performance

Very Weak

Over the last 90 days CompX International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Atos Origin and CompX International

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

The idea behind Atos Origin SA and CompX International 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.