Correlation Between GBT Technologies and Atos SE

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

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

Diversification Opportunities for GBT Technologies and Atos SE

-0.07

Correlation Coefficient

GBT Technologies  Atos SE

Good diversification

The 3 months correlation between GBT and Atos is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding GBT Technologies and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and GBT Technologies 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 GBT Technologies are associated (or correlated) with Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of GBT Technologies i.e., GBT Technologies and Atos SE go up and down completely randomly.

Pair Corralation between GBT Technologies and Atos SE

Given the investment horizon of 90 days GBT Technologies is expected to generate 16.51 times more return on investment than Atos SE. However, GBT Technologies is 16.51 times more volatile than Atos SE. It trades about 0.2 of its potential returns per unit of risk. Atos SE is currently generating about 0.09 per unit of risk. If you would invest  0.02  in GBT Technologies on December 27, 2024 and sell it today you would lose (0.01) from holding GBT Technologies or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

GBT Technologies  vs.  Atos SE

GBT Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GBT Technologies are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, GBT Technologies demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Atos SE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atos SE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Atos SE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GBT Technologies and Atos SE

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

The idea behind GBT Technologies and Atos SE 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.