Correlation Between Marstons PLC and Atos SE

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

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

Diversification Opportunities for Marstons PLC and Atos SE

-0.4

Correlation Coefficient

Marstons PLC  Atos SE

Very good diversification

The 3 months correlation between Marstons and Atos is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Marstons PLC and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Marstons PLC 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 Marstons PLC 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 Marstons PLC i.e., Marstons PLC and Atos SE go up and down completely randomly.

Pair Corralation between Marstons PLC and Atos SE

If you would invest  4,336  in Marstons PLC on October 15, 2024 and sell it today you would lose (276.00) from holding Marstons PLC or give up 6.37% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Marstons PLC  vs.  Atos SE

Marstons PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marstons PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Marstons PLC is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Atos SE

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Atos SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively weak basic indicators, Atos SE unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marstons PLC and Atos SE

The main advantage of trading using opposite Marstons PLC and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marstons PLC 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 Marstons PLC 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.