Correlation Between ATOSS SOFTWARE and EAST SIDE

Can any of the company-specific risk be diversified away by investing in both ATOSS SOFTWARE and EAST SIDE 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 ATOSS SOFTWARE and EAST SIDE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATOSS SOFTWARE and EAST SIDE GAMES, you can compare the effects of market volatilities on ATOSS SOFTWARE and EAST SIDE 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 ATOSS SOFTWARE with a short position of EAST SIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and EAST SIDE.

Diversification Opportunities for ATOSS SOFTWARE and EAST SIDE

0.59

Correlation Coefficient

ATOSS SOFTWARE  EAST SIDE

Very weak diversification

The 3 months correlation between ATOSS and EAST is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and EAST SIDE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAST SIDE GAMES and ATOSS SOFTWARE 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 ATOSS SOFTWARE are associated (or correlated) with EAST SIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAST SIDE GAMES has no effect on the direction of ATOSS SOFTWARE i.e., ATOSS SOFTWARE and EAST SIDE go up and down completely randomly.

Pair Corralation between ATOSS SOFTWARE and EAST SIDE

Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to generate 1.12 times less return on investment than EAST SIDE. But when comparing it to its historical volatility, ATOSS SOFTWARE is 3.02 times less risky than EAST SIDE. It trades about 0.05 of its potential returns per unit of risk. EAST SIDE GAMES is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  48.00  in EAST SIDE GAMES on September 23, 2024 and sell it today you would lose (14.00) from holding EAST SIDE GAMES or give up 29.17% of portfolio value over 90 days.

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

ATOSS SOFTWARE  vs.  EAST SIDE GAMES

ATOSS SOFTWARE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATOSS SOFTWARE 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 comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

EAST SIDE GAMES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EAST SIDE GAMES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with ATOSS SOFTWARE and EAST SIDE

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

The idea behind ATOSS SOFTWARE and EAST SIDE GAMES 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.