Correlation Between Atos SE and IBEX Technologies
Can any of the company-specific risk be diversified away by investing in both Atos SE and IBEX Technologies 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 IBEX Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and IBEX Technologies, you can compare the effects of market volatilities on Atos SE and IBEX Technologies 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 IBEX Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and IBEX Technologies.
Diversification Opportunities for Atos SE and IBEX Technologies
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atos and IBEX is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and IBEX Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBEX Technologies 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 IBEX Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBEX Technologies has no effect on the direction of Atos SE i.e., Atos SE and IBEX Technologies go up and down completely randomly.
Pair Corralation between Atos SE and IBEX Technologies
Assuming the 90 days horizon Atos SE is expected to generate 96.76 times more return on investment than IBEX Technologies. However, Atos SE is 96.76 times more volatile than IBEX Technologies. It trades about 0.11 of its potential returns per unit of risk. IBEX Technologies is currently generating about 0.01 per unit of risk. If you would invest 69.00 in Atos SE on September 22, 2024 and sell it today you would lose (68.79) from holding Atos SE or give up 99.7% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.48% |
Values | Daily Returns |
Atos SE vs. IBEX Technologies
Performance |
Timeline |
Atos SE |
IBEX Technologies |
Atos SE and IBEX Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atos SE and IBEX Technologies
The main advantage of trading using opposite Atos SE and IBEX Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, IBEX Technologies 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 IBEX Technologies will offset losses from the drop in IBEX Technologies' long position.Atos SE vs. GEAR4MUSIC LS 10 | Atos SE vs. Hochschild Mining plc | Atos SE vs. MOVIE GAMES SA | Atos SE vs. TRAVEL LEISURE DL 01 |
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Check out your portfolio center.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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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