Correlation Between Atlas Copco and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both Atlas Copco and Meta Platforms 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 Atlas Copco and Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Copco ADR and Meta Platforms, you can compare the effects of market volatilities on Atlas Copco and Meta Platforms 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 Atlas Copco with a short position of Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Copco and Meta Platforms.
Diversification Opportunities for Atlas Copco and Meta Platforms
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Atlas and Meta is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Copco ADR and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms and Atlas Copco 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 Atlas Copco ADR are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Atlas Copco i.e., Atlas Copco and Meta Platforms go up and down completely randomly.
Pair Corralation between Atlas Copco and Meta Platforms
If you would invest 1,520 in Atlas Copco ADR on December 29, 2023 and sell it today you would earn a total of 4.00 from holding Atlas Copco ADR or generate 0.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Atlas Copco ADR vs. Meta Platforms
Performance |
Timeline |
Atlas Copco ADR |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Atlas Copco and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Atlas Copco and Meta Platforms
The main advantage of trading using opposite Atlas Copco and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Copco position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.Atlas Copco vs. Bank Mandiri Persero | Atlas Copco vs. Bank Mandiri Persero | Atlas Copco vs. PT Bank Rakyat | Atlas Copco vs. Bank Rakyat |
Meta Platforms vs. Jacobs Solutions | Meta Platforms vs. ATRenew Inc DRC | Meta Platforms vs. Radcom | Meta Platforms vs. Arrow Electronics |
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.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Transaction History View history of all your transactions and understand their impact on performance | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |