Correlation Between Sopra Steria and Atos SE
Can any of the company-specific risk be diversified away by investing in both Sopra Steria and Atos SE 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 Sopra Steria and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sopra Steria Group and Atos SE, you can compare the effects of market volatilities on Sopra Steria and Atos SE 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 Sopra Steria with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sopra Steria and Atos SE.
Diversification Opportunities for Sopra Steria and Atos SE
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sopra and Atos is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sopra Steria Group and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Sopra Steria 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 Sopra Steria Group are associated (or correlated) with Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of Sopra Steria i.e., Sopra Steria and Atos SE go up and down completely randomly.
Pair Corralation between Sopra Steria and Atos SE
Assuming the 90 days trading horizon Sopra Steria Group is expected to generate 0.06 times more return on investment than Atos SE. However, Sopra Steria Group is 15.52 times less risky than Atos SE. It trades about -0.14 of its potential returns per unit of risk. Atos SE is currently generating about -0.08 per unit of risk. If you would invest 18,090 in Sopra Steria Group on September 24, 2024 and sell it today you would lose (1,480) from holding Sopra Steria Group or give up 8.18% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sopra Steria Group vs. Atos SE
Performance |
Timeline |
Sopra Steria Group |
Atos SE |
Sopra Steria and Atos SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sopra Steria and Atos SE
The main advantage of trading using opposite Sopra Steria and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sopra Steria position performs unexpectedly, Atos SE 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 Atos SE will offset losses from the drop in Atos SE's long position.Sopra Steria vs. Manitou BF SA | Sopra Steria vs. Memscap Regpt | Sopra Steria vs. Maat Pharma SA | Sopra Steria vs. Poxel SA |
Atos SE vs. Sopra Steria Group | Atos SE vs. Manitou BF SA | Atos SE vs. Memscap Regpt | Atos SE vs. Maat Pharma SA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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