Correlation Between Atento SA and Team

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

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

Diversification Opportunities for Atento SA and Team

0.11

Correlation Coefficient

Atento SA  Team

Average diversification

The 3 months correlation between Atento and Team is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Atento SA and Team Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Team Inc and Atento SA 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 Atento SA are associated (or correlated) with Team. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Team Inc has no effect on the direction of Atento SA i.e., Atento SA and Team go up and down completely randomly.

Pair Corralation between Atento SA and Team

Given the investment horizon of 90 days Atento SA is expected to under-perform the Team. In addition to that, Atento SA is 1.72 times more volatile than Team Inc. It trades about -0.09 of its total potential returns per unit of risk. Team Inc is currently generating about 0.06 per unit of volatility. If you would invest  566.00  in Team Inc on September 13, 2024 and sell it today you would earn a total of  971.00  from holding Team Inc or generate 171.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	29.15%
Values	Daily Returns

Atento SA  vs.  Team Inc

Atento SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atento SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Atento SA is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Team Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Team Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Team may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Atento SA and Team

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

The idea behind Atento SA and Team Inc 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.