Correlation Between Quisitive Technology and Atos SE

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

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

Diversification Opportunities for Quisitive Technology and Atos SE

0.37

Correlation Coefficient

Quisitive Technology  Atos SE

Weak diversification

The 3 months correlation between Quisitive and Atos is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Quisitive Technology Solutions and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Quisitive Technology 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 Quisitive Technology Solutions 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 Quisitive Technology i.e., Quisitive Technology and Atos SE go up and down completely randomly.

Pair Corralation between Quisitive Technology and Atos SE

Assuming the 90 days horizon Quisitive Technology Solutions is expected to generate 0.51 times more return on investment than Atos SE. However, Quisitive Technology Solutions is 1.96 times less risky than Atos SE. It trades about 0.17 of its potential returns per unit of risk. Atos SE is currently generating about 0.08 per unit of risk. If you would invest  24.00  in Quisitive Technology Solutions on December 30, 2024 and sell it today you would earn a total of  15.00  from holding Quisitive Technology Solutions or generate 62.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	83.87%
Values	Daily Returns

Quisitive Technology Solutions  vs.  Atos SE

Quisitive Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quisitive Technology Solutions are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Quisitive Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Atos SE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Atos SE are ranked lower than 5 (%) 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 Quisitive Technology and Atos SE

The main advantage of trading using opposite Quisitive Technology and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quisitive Technology 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 Quisitive Technology Solutions 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..