Correlation Between Atos SE and Fastly
Can any of the company-specific risk be diversified away by investing in both Atos SE and Fastly 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 Fastly into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Fastly Inc, you can compare the effects of market volatilities on Atos SE and Fastly 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 Fastly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Fastly.
Diversification Opportunities for Atos SE and Fastly
Excellent diversification
The 3 months correlation between Atos and Fastly is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Fastly Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fastly Inc 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 Fastly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fastly Inc has no effect on the direction of Atos SE i.e., Atos SE and Fastly go up and down completely randomly.
Pair Corralation between Atos SE and Fastly
Assuming the 90 days horizon Atos SE is expected to generate 29.71 times more return on investment than Fastly. However, Atos SE is 29.71 times more volatile than Fastly Inc. It trades about 0.11 of its potential returns per unit of risk. Fastly Inc is currently generating about 0.15 per unit of risk. If you would invest 68.00 in Atos SE on September 24, 2024 and sell it today you would lose (67.79) from holding Atos SE or give up 99.69% 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. Fastly Inc
Performance |
Timeline |
Atos SE |
Fastly Inc |
Atos SE and Fastly Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atos SE and Fastly
The main advantage of trading using opposite Atos SE and Fastly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Fastly 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 Fastly will offset losses from the drop in Fastly's long position.Atos SE vs. Accenture plc | Atos SE vs. International Business Machines | Atos SE vs. Infosys Limited | Atos SE vs. Cognizant Technology Solutions |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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