Correlation Between Atento SA and Blue Water

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

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

Diversification Opportunities for Atento SA and Blue Water

0.38

Correlation Coefficient

Atento SA  Blue Water

Weak diversification

The 3 months correlation between Atento and Blue is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Atento SA and Blue Water Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Water Ventures and Atento SA 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 Atento SA are associated (or correlated) with Blue Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Water Ventures has no effect on the direction of Atento SA i.e., Atento SA and Blue Water go up and down completely randomly.

Pair Corralation between Atento SA and Blue Water

If you would invest  47.00  in Atento SA on September 5, 2024 and sell it today you would earn a total of  0.00  from holding Atento SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Atento SA  vs.  Blue Water Ventures

Atento SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atento SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Atento SA is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Blue Water Ventures

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blue Water Ventures has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Atento SA and Blue Water

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

The idea behind Atento SA and Blue Water Ventures 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.