Correlation Between Fiducial Office and ATEME SA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Fiducial Office and ATEME 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 Fiducial Office and ATEME SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiducial Office Solutions and ATEME SA, you can compare the effects of market volatilities on Fiducial Office and ATEME 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 Fiducial Office with a short position of ATEME SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiducial Office and ATEME SA.

Diversification Opportunities for Fiducial Office and ATEME SA

0.11
  Correlation Coefficient

Average diversification

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

Pair Corralation between Fiducial Office and ATEME SA

Assuming the 90 days trading horizon Fiducial Office is expected to generate 80.42 times less return on investment than ATEME SA. But when comparing it to its historical volatility, Fiducial Office Solutions is 12.57 times less risky than ATEME SA. It trades about 0.04 of its potential returns per unit of risk. ATEME SA is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  326.00  in ATEME SA on September 27, 2024 and sell it today you would earn a total of  240.00  from holding ATEME SA or generate 73.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Fiducial Office Solutions  vs.  ATEME SA

 Performance 
       Timeline  
Fiducial Office Solutions 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Fiducial Office Solutions are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Fiducial Office is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
ATEME SA 

Risk-Adjusted Performance

19 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in ATEME SA are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, ATEME SA reported solid returns over the last few months and may actually be approaching a breakup point.

Fiducial Office and ATEME SA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Fiducial Office and ATEME SA

The main advantage of trading using opposite Fiducial Office and ATEME SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiducial Office position performs unexpectedly, ATEME 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 ATEME SA will offset losses from the drop in ATEME SA's long position.
The idea behind Fiducial Office Solutions and ATEME SA 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Global Correlations
Find global opportunities by holding instruments from different markets