Correlation Between TaTaTu SpA and Sopra Steria

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

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

Diversification Opportunities for TaTaTu SpA and Sopra Steria

0.0

Correlation Coefficient

TaTaTu SpA  Sopra Steria

Pay attention - limited upside

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

Pair Corralation between TaTaTu SpA and Sopra Steria

If you would invest  545.00  in TaTaTu SpA on October 15, 2024 and sell it today you would earn a total of  0.00  from holding TaTaTu SpA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TaTaTu SpA  vs.  Sopra Steria Group

TaTaTu SpA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TaTaTu SpA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, TaTaTu SpA is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Sopra Steria Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sopra Steria Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with TaTaTu SpA and Sopra Steria

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

The idea behind TaTaTu SpA and Sopra Steria Group 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.