Correlation Between Atos SE and ACTEOS SA

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

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

Diversification Opportunities for Atos SE and ACTEOS SA

0.56

Correlation Coefficient

Atos SE  ACTEOS SA

Very weak diversification

The 3 months correlation between Atos and ACTEOS is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and ACTEOS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACTEOS SA and Atos SE 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 SE are associated (or correlated) with ACTEOS SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACTEOS SA has no effect on the direction of Atos SE i.e., Atos SE and ACTEOS SA go up and down completely randomly.

Pair Corralation between Atos SE and ACTEOS SA

Assuming the 90 days trading horizon Atos SE is expected to generate 2.35 times more return on investment than ACTEOS SA. However, Atos SE is 2.35 times more volatile than ACTEOS SA. It trades about 0.13 of its potential returns per unit of risk. ACTEOS SA is currently generating about 0.05 per unit of risk. If you would invest  0.27  in Atos SE on December 26, 2024 and sell it today you would earn a total of  0.13  from holding Atos SE or generate 48.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Atos SE  vs.  ACTEOS SA

Atos SE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atos SE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Atos SE sustained solid returns over the last few months and may actually be approaching a breakup point.

ACTEOS SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ACTEOS SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, ACTEOS SA may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Atos SE and ACTEOS SA

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

The idea behind Atos SE and ACTEOS SA 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 Valuation module to check real value of public entities based on technical and fundamental data.