Correlation Between SEATech Ventures and Atos Origin

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

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

Diversification Opportunities for SEATech Ventures and Atos Origin

0.47

Correlation Coefficient

SEATech Ventures  Atos Origin

Very weak diversification

The 3 months correlation between SEATech and Atos is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SEATech Ventures Corp and Atos Origin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos Origin SA and SEATech Ventures 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 SEATech Ventures Corp are associated (or correlated) with Atos Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos Origin SA has no effect on the direction of SEATech Ventures i.e., SEATech Ventures and Atos Origin go up and down completely randomly.

Pair Corralation between SEATech Ventures and Atos Origin

Given the investment horizon of 90 days SEATech Ventures Corp is expected to generate 0.46 times more return on investment than Atos Origin. However, SEATech Ventures Corp is 2.18 times less risky than Atos Origin. It trades about -0.06 of its potential returns per unit of risk. Atos Origin SA is currently generating about -0.26 per unit of risk. If you would invest  4.00  in SEATech Ventures Corp on December 29, 2024 and sell it today you would lose (1.00) from holding SEATech Ventures Corp or give up 25.0% of portfolio value over 90 days.

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

SEATech Ventures Corp  vs.  Atos Origin SA

SEATech Ventures Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days SEATech Ventures Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Atos Origin SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atos Origin SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with SEATech Ventures and Atos Origin

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

The idea behind SEATech Ventures Corp and Atos Origin 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.