Correlation Between Atos SE and Riber SA
Can any of the company-specific risk be diversified away by investing in both Atos SE and Riber SA 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 Atos SE and Riber SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Riber SA, you can compare the effects of market volatilities on Atos SE and Riber SA 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 Atos SE with a short position of Riber SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Riber SA.
Diversification Opportunities for Atos SE and Riber SA
Very good diversification
The 3 months correlation between Atos and Riber is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Riber SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riber SA and Atos SE 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 Atos SE are associated (or correlated) with Riber SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riber SA has no effect on the direction of Atos SE i.e., Atos SE and Riber SA go up and down completely randomly.
Pair Corralation between Atos SE and Riber SA
Assuming the 90 days trading horizon Atos SE is expected to generate 72.61 times more return on investment than Riber SA. However, Atos SE is 72.61 times more volatile than Riber SA. It trades about 0.11 of its potential returns per unit of risk. Riber SA is currently generating about 0.08 per unit of risk. If you would invest 0.50 in Atos SE on September 23, 2024 and sell it today you would lose (0.29) from holding Atos SE or give up 58.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Atos SE vs. Riber SA
Performance |
Timeline |
Atos SE |
Riber SA |
Atos SE and Riber SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atos SE and Riber SA
The main advantage of trading using opposite Atos SE and Riber SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Riber SA 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 Riber SA will offset losses from the drop in Riber SA's long position.Atos SE vs. Sopra Steria Group | Atos SE vs. Manitou BF SA | Atos SE vs. Memscap Regpt | Atos SE vs. Maat Pharma SA |
Riber SA vs. Vallourec | Riber SA vs. Dassault Systemes SE | Riber SA vs. Teleperformance SE | Riber SA vs. Atos SE |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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