Correlation Between Usio and Atos Origin

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

By analyzing existing cross correlation between Usio Inc and Atos Origin SA, you can compare the effects of market volatilities on Usio and Atos Origin 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 Usio with a short position of Atos Origin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Usio and Atos Origin.

Diversification Opportunities for Usio and Atos Origin

0.61

Correlation Coefficient

Usio  Atos Origin

Poor diversification

The 3 months correlation between Usio and Atos is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Usio Inc and Atos Origin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos Origin SA and Usio 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 Usio Inc are associated (or correlated) with Atos Origin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos Origin SA has no effect on the direction of Usio i.e., Usio and Atos Origin go up and down completely randomly.

Pair Corralation between Usio and Atos Origin

Given the investment horizon of 90 days Usio is expected to generate 39.0 times less return on investment than Atos Origin. But when comparing it to its historical volatility, Usio Inc is 3.48 times less risky than Atos Origin. It trades about 0.01 of its potential returns per unit of risk. Atos Origin SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  13.00  in Atos Origin SA on September 1, 2024 and sell it today you would earn a total of  7.00  from holding Atos Origin SA or generate 53.85% return on investment over 90 days.

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

Usio Inc  vs.  Atos Origin SA

Usio Inc

Risk-Adjusted Performance

0 of 100

Very Weak

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

Atos Origin SA

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atos Origin SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Atos Origin showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Usio and Atos Origin

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

The idea behind Usio Inc and Atos Origin 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.