Correlation Between Atos SE and Brinker International

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

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

Diversification Opportunities for Atos SE and Brinker International

-0.61

Correlation Coefficient

Atos SE  Brinker International

Excellent diversification

The 3 months correlation between Atos and Brinker is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Brinker International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinker International 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 Brinker International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinker International has no effect on the direction of Atos SE i.e., Atos SE and Brinker International go up and down completely randomly.

Pair Corralation between Atos SE and Brinker International

Assuming the 90 days horizon Atos SE is expected to generate 20.98 times more return on investment than Brinker International. However, Atos SE is 20.98 times more volatile than Brinker International. It trades about 0.08 of its potential returns per unit of risk. Brinker International is currently generating about 0.13 per unit of risk. If you would invest  16.00  in Atos SE on September 23, 2024 and sell it today you would lose (15.79) from holding Atos SE or give up 98.69% of portfolio value over 90 days.

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

Atos SE  vs.  Brinker International

Atos SE

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atos SE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Atos SE reported solid returns over the last few months and may actually be approaching a breakup point.

Brinker International

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Brinker International are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Brinker International reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atos SE and Brinker International

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

The idea behind Atos SE and Brinker International 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.