Correlation Between ASGN and Atos SE

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

By analyzing existing cross correlation between ASGN Inc and Atos SE, you can compare the effects of market volatilities on ASGN and Atos SE 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 ASGN with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASGN and Atos SE.

Diversification Opportunities for ASGN and Atos SE

0.26

Correlation Coefficient

ASGN  Atos SE

Modest diversification

The 3 months correlation between ASGN and Atos is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ASGN Inc and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and ASGN 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 ASGN Inc are associated (or correlated) with Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of ASGN i.e., ASGN and Atos SE go up and down completely randomly.

Pair Corralation between ASGN and Atos SE

Given the investment horizon of 90 days ASGN Inc is expected to generate 0.09 times more return on investment than Atos SE. However, ASGN Inc is 11.5 times less risky than Atos SE. It trades about -0.22 of its potential returns per unit of risk. Atos SE is currently generating about -0.14 per unit of risk. If you would invest  9,155  in ASGN Inc on November 28, 2024 and sell it today you would lose (2,132) from holding ASGN Inc or give up 23.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.31%
Values	Daily Returns

ASGN Inc  vs.  Atos SE

ASGN Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASGN Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in March 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Atos SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atos SE 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 March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with ASGN and Atos SE

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

The idea behind ASGN Inc and Atos SE 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.