Correlation Between Bryn Resources and Atento SA

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

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

Diversification Opportunities for Bryn Resources and Atento SA

0.0

Correlation Coefficient

Bryn Resources  Atento SA

Pay attention - limited upside

The 3 months correlation between Bryn and Atento is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bryn Resources and Atento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atento SA and Bryn Resources 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 Bryn Resources are associated (or correlated) with Atento SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atento SA has no effect on the direction of Bryn Resources i.e., Bryn Resources and Atento SA go up and down completely randomly.

Pair Corralation between Bryn Resources and Atento SA

If you would invest  0.31  in Bryn Resources on December 25, 2024 and sell it today you would earn a total of  0.01  from holding Bryn Resources or generate 3.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bryn Resources  vs.  Atento SA

Bryn Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bryn Resources are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Bryn Resources displayed solid returns over the last few months and may actually be approaching a breakup point.

Atento SA

Risk-Adjusted Performance

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.

Pair Trading with Bryn Resources and Atento SA

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

The idea behind Bryn Resources and Atento 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.