Correlation Between Atos Origin and SB Technology

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

Diversification Opportunities for Atos Origin and SB Technology

-0.2

Correlation Coefficient

Atos Origin  SB Technology

Good diversification

The 3 months correlation between Atos and SFBTF is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Atos Origin SA and SB Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SB Technology Corp 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 SB Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SB Technology Corp has no effect on the direction of Atos Origin i.e., Atos Origin and SB Technology go up and down completely randomly.

Pair Corralation between Atos Origin and SB Technology

If you would invest  17.00  in Atos Origin SA on August 30, 2024 and sell it today you would earn a total of  2.00  from holding Atos Origin SA or generate 11.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Atos Origin SA  vs.  SB Technology Corp

Atos Origin SA

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Atos Origin SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Atos Origin showed solid returns over the last few months and may actually be approaching a breakup point.

SB Technology Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SB Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SB Technology is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Atos Origin and SB Technology

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

The idea behind Atos Origin SA and SB Technology Corp 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.