Correlation Between Doubledown Interactive and Atari SA

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

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

Diversification Opportunities for Doubledown Interactive and Atari SA

-0.27

Correlation Coefficient

Doubledown Interactive  Atari SA

Very good diversification

The 3 months correlation between Doubledown and Atari is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and Atari SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atari SA and Doubledown Interactive 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 Doubledown Interactive Co are associated (or correlated) with Atari SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atari SA has no effect on the direction of Doubledown Interactive i.e., Doubledown Interactive and Atari SA go up and down completely randomly.

Pair Corralation between Doubledown Interactive and Atari SA

Considering the 90-day investment horizon Doubledown Interactive Co is expected to under-perform the Atari SA. But the stock apears to be less risky and, when comparing its historical volatility, Doubledown Interactive Co is 4.35 times less risky than Atari SA. The stock trades about -0.02 of its potential returns per unit of risk. The Atari SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  12.00  in Atari SA on December 27, 2024 and sell it today you would earn a total of  2.00  from holding Atari SA or generate 16.67% return on investment over 90 days.

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

Doubledown Interactive Co  vs.  Atari SA

Doubledown Interactive

Risk-Adjusted Performance

Very Weak

Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Doubledown Interactive is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Atari SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Atari SA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Atari SA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Doubledown Interactive and Atari SA

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

The idea behind Doubledown Interactive Co and Atari 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.