Correlation Between Atos Origin and Cimpress

Can any of the company-specific risk be diversified away by investing in both Atos Origin and Cimpress 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 Cimpress 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 Cimpress NV, you can compare the effects of market volatilities on Atos Origin and Cimpress 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 Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos Origin and Cimpress.

Diversification Opportunities for Atos Origin and Cimpress

0.63

Correlation Coefficient

Atos Origin  Cimpress

Poor diversification

The 3 months correlation between Atos and Cimpress is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV 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 Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Atos Origin i.e., Atos Origin and Cimpress go up and down completely randomly.

Pair Corralation between Atos Origin and Cimpress

Assuming the 90 days horizon Atos Origin SA is expected to under-perform the Cimpress. In addition to that, Atos Origin is 21.29 times more volatile than Cimpress NV. It trades about -0.23 of its total potential returns per unit of risk. Cimpress NV is currently generating about -0.52 per unit of volatility. If you would invest  8,317  in Cimpress NV on October 8, 2024 and sell it today you would lose (1,278) from holding Cimpress NV or give up 15.37% of portfolio value over 90 days.

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

Atos Origin SA  vs.  Cimpress NV

Atos Origin SA

Risk-Adjusted Performance

0 of 100

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 abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Cimpress NV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cimpress NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest abnormal performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Atos Origin and Cimpress

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

The idea behind Atos Origin SA and Cimpress NV 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.