Correlation Between Atos SE and Switch
Can any of the company-specific risk be diversified away by investing in both Atos SE and Switch 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 Switch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atos SE and Switch Inc, you can compare the effects of market volatilities on Atos SE and Switch 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 Switch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Switch.
Diversification Opportunities for Atos SE and Switch
Very good diversification
The 3 months correlation between Atos and Switch is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Switch Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Switch 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 Switch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Switch Inc has no effect on the direction of Atos SE i.e., Atos SE and Switch go up and down completely randomly.
Pair Corralation between Atos SE and Switch
If you would invest 197.00 in Atos SE on January 20, 2024 and sell it today you would earn a total of 17.00 from holding Atos SE or generate 8.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Atos SE vs. Switch Inc
Performance |
Timeline |
Atos SE |
Switch Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Atos SE and Switch Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atos SE and Switch
The main advantage of trading using opposite Atos SE and Switch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atos SE position performs unexpectedly, Switch 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 Switch will offset losses from the drop in Switch's long position.Atos SE vs. ASGN Inc | Atos SE vs. ExlService Holdings | Atos SE vs. CACI International | Atos SE vs. CLARIVATE PLC |
Switch vs. U Haul Holding | Switch vs. Federal Home Loan | Switch vs. BCE Inc | Switch vs. Hertz Global Holdings |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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