Correlation Between SCHALTBAU HOLDING and ATOSS SOFTWARE

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

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

Diversification Opportunities for SCHALTBAU HOLDING and ATOSS SOFTWARE

-0.31

Correlation Coefficient

SCHALTBAU HOLDING  ATOSS SOFTWARE

Very good diversification

The 3 months correlation between SCHALTBAU and ATOSS is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SCHALTBAU HOLDING and ATOSS SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS SOFTWARE and SCHALTBAU HOLDING 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 SCHALTBAU HOLDING are associated (or correlated) with ATOSS SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS SOFTWARE has no effect on the direction of SCHALTBAU HOLDING i.e., SCHALTBAU HOLDING and ATOSS SOFTWARE go up and down completely randomly.

Pair Corralation between SCHALTBAU HOLDING and ATOSS SOFTWARE

Assuming the 90 days trading horizon SCHALTBAU HOLDING is expected to generate 0.56 times more return on investment than ATOSS SOFTWARE. However, SCHALTBAU HOLDING is 1.77 times less risky than ATOSS SOFTWARE. It trades about 0.01 of its potential returns per unit of risk. ATOSS SOFTWARE is currently generating about -0.01 per unit of risk. If you would invest  5,800  in SCHALTBAU HOLDING on September 15, 2024 and sell it today you would earn a total of  0.00  from holding SCHALTBAU HOLDING or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SCHALTBAU HOLDING  vs.  ATOSS SOFTWARE

SCHALTBAU HOLDING

Risk-Adjusted Performance

0 of 100

Very Weak

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

ATOSS SOFTWARE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATOSS SOFTWARE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, ATOSS SOFTWARE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SCHALTBAU HOLDING and ATOSS SOFTWARE

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

The idea behind SCHALTBAU HOLDING and ATOSS SOFTWARE 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 Transaction History module to view history of all your transactions and understand their impact on performance.