Correlation Between ATOSS SOFTWARE and Aurubis AG
Can any of the company-specific risk be diversified away by investing in both ATOSS SOFTWARE and Aurubis AG 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 ATOSS SOFTWARE and Aurubis AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATOSS SOFTWARE and Aurubis AG, you can compare the effects of market volatilities on ATOSS SOFTWARE and Aurubis AG 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 ATOSS SOFTWARE with a short position of Aurubis AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and Aurubis AG.
Diversification Opportunities for ATOSS SOFTWARE and Aurubis AG
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATOSS and Aurubis is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and Aurubis AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurubis AG and ATOSS SOFTWARE 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 ATOSS SOFTWARE are associated (or correlated) with Aurubis AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurubis AG has no effect on the direction of ATOSS SOFTWARE i.e., ATOSS SOFTWARE and Aurubis AG go up and down completely randomly.
Pair Corralation between ATOSS SOFTWARE and Aurubis AG
Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to generate 0.9 times more return on investment than Aurubis AG. However, ATOSS SOFTWARE is 1.11 times less risky than Aurubis AG. It trades about 0.06 of its potential returns per unit of risk. Aurubis AG is currently generating about 0.01 per unit of risk. If you would invest 6,868 in ATOSS SOFTWARE on September 26, 2024 and sell it today you would earn a total of 4,452 from holding ATOSS SOFTWARE or generate 64.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ATOSS SOFTWARE vs. Aurubis AG
Performance |
Timeline |
ATOSS SOFTWARE |
Aurubis AG |
ATOSS SOFTWARE and Aurubis AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATOSS SOFTWARE and Aurubis AG
The main advantage of trading using opposite ATOSS SOFTWARE and Aurubis AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATOSS SOFTWARE position performs unexpectedly, Aurubis AG 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 Aurubis AG will offset losses from the drop in Aurubis AG's long position.ATOSS SOFTWARE vs. Lendlease Group | ATOSS SOFTWARE vs. Global Ship Lease | ATOSS SOFTWARE vs. Media and Games | ATOSS SOFTWARE vs. QINGCI GAMES INC |
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Check out your portfolio center.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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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