Correlation Between Atos Origin and Castellum

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

Diversification Opportunities for Atos Origin and Castellum

-0.76

Correlation Coefficient

Atos Origin  Castellum

Pay attention - limited upside

The 3 months correlation between Atos and Castellum is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and Castellum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castellum 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 Castellum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castellum has no effect on the direction of Atos Origin i.e., Atos Origin and Castellum go up and down completely randomly.

Pair Corralation between Atos Origin and Castellum

Assuming the 90 days horizon Atos Origin SA is expected to under-perform the Castellum. But the pink sheet apears to be less risky and, when comparing its historical volatility, Atos Origin SA is 1.85 times less risky than Castellum. The pink sheet trades about -0.33 of its potential returns per unit of risk. The Castellum is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  43.00  in Castellum on October 23, 2024 and sell it today you would earn a total of  66.00  from holding Castellum or generate 153.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	94.74%
Values	Daily Returns

Atos Origin SA  vs.  Castellum

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 weak 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.

Castellum

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Castellum are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, Castellum displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atos Origin and Castellum

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

The idea behind Atos Origin SA and Castellum 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.