Correlation Between Atos SE and Phreesia

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

By analyzing existing cross correlation between Atos SE and Phreesia, you can compare the effects of market volatilities on Atos SE and Phreesia 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 Phreesia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Phreesia.

Diversification Opportunities for Atos SE and Phreesia

-0.44

Correlation Coefficient

Atos SE  Phreesia

Very good diversification

The 3 months correlation between Atos and Phreesia is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Phreesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phreesia 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 Phreesia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phreesia has no effect on the direction of Atos SE i.e., Atos SE and Phreesia go up and down completely randomly.

Pair Corralation between Atos SE and Phreesia

Assuming the 90 days horizon Atos SE is expected to generate 36.25 times more return on investment than Phreesia. However, Atos SE is 36.25 times more volatile than Phreesia. It trades about 0.11 of its potential returns per unit of risk. Phreesia is currently generating about 0.1 per unit of risk. If you would invest  69.00  in Atos SE on September 26, 2024 and sell it today you would lose (68.76) from holding Atos SE or give up 99.65% 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.  Phreesia

Atos SE

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atos SE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Atos SE reported solid returns over the last few months and may actually be approaching a breakup point.

Phreesia

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Phreesia are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Phreesia unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atos SE and Phreesia

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

The idea behind Atos SE and Phreesia 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.