Correlation Between Atos SE and Seche Environnem
Can any of the company-specific risk be diversified away by investing in both Atos SE and Seche Environnem 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 Seche Environnem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Seche Environnem, you can compare the effects of market volatilities on Atos SE and Seche Environnem 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 Seche Environnem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Seche Environnem.
Diversification Opportunities for Atos SE and Seche Environnem
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atos and Seche is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Seche Environnem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seche Environnem 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 Seche Environnem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seche Environnem has no effect on the direction of Atos SE i.e., Atos SE and Seche Environnem go up and down completely randomly.
Pair Corralation between Atos SE and Seche Environnem
Assuming the 90 days trading horizon Atos SE is expected to generate 76.35 times more return on investment than Seche Environnem. However, Atos SE is 76.35 times more volatile than Seche Environnem. It trades about 0.12 of its potential returns per unit of risk. Seche Environnem is currently generating about -0.17 per unit of risk. If you would invest 0.48 in Atos SE on September 15, 2024 and sell it today you would lose (0.25) from holding Atos SE or give up 52.08% 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. Seche Environnem
Performance |
Timeline |
Atos SE |
Seche Environnem |
Atos SE and Seche Environnem Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atos SE and Seche Environnem
The main advantage of trading using opposite Atos SE and Seche Environnem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Seche Environnem 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 Seche Environnem will offset losses from the drop in Seche Environnem's long position.The idea behind Atos SE and Seche Environnem 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.Seche Environnem vs. Veolia Environnement VE | Seche Environnem vs. Derichebourg | Seche Environnem vs. Groupe Pizzorno Environnement | Seche Environnem vs. Aurea SA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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