Correlation Between Atos SE and Trigano SA

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

Diversification Opportunities for Atos SE and Trigano SA

-0.22

Correlation Coefficient

Atos SE  Trigano SA

Very good diversification

The 3 months correlation between Atos and Trigano is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Trigano SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trigano 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 Trigano SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trigano SA has no effect on the direction of Atos SE i.e., Atos SE and Trigano SA go up and down completely randomly.

Pair Corralation between Atos SE and Trigano SA

Assuming the 90 days trading horizon Atos SE is expected to generate 83.44 times more return on investment than Trigano SA. However, Atos SE is 83.44 times more volatile than Trigano SA. It trades about 0.12 of its potential returns per unit of risk. Trigano SA is currently generating about 0.01 per unit of risk. If you would invest  0.50  in Atos SE on October 15, 2024 and sell it today you would lose (0.30) from holding Atos SE or give up 60.0% of portfolio value over 90 days.

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

Atos SE  vs.  Trigano SA

Atos SE

Risk-Adjusted Performance

9 of 100

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.

Trigano SA

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Trigano SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward indicators, Trigano SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Atos SE and Trigano SA

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

The idea behind Atos SE and Trigano 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.