Correlation Between Atos SE and Quisitive Technology

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

By analyzing existing cross correlation between Atos SE and Quisitive Technology Solutions, you can compare the effects of market volatilities on Atos SE and Quisitive Technology 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 Quisitive Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atos SE and Quisitive Technology.

Diversification Opportunities for Atos SE and Quisitive Technology

-0.27

Correlation Coefficient

Atos SE  Quisitive Technology

Very good diversification

The 3 months correlation between Atos and Quisitive is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Atos SE and Quisitive Technology Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quisitive Technology 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 Quisitive Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quisitive Technology has no effect on the direction of Atos SE i.e., Atos SE and Quisitive Technology go up and down completely randomly.

Pair Corralation between Atos SE and Quisitive Technology

Assuming the 90 days horizon Atos SE is expected to generate 2.65 times more return on investment than Quisitive Technology. However, Atos SE is 2.65 times more volatile than Quisitive Technology Solutions. It trades about 0.01 of its potential returns per unit of risk. Quisitive Technology Solutions is currently generating about -0.2 per unit of risk. If you would invest  230.00  in Atos SE on February 5, 2024 and sell it today you would lose (13.00) from holding Atos SE or give up 5.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Atos SE  vs.  Quisitive Technology Solutions

Atos SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atos SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in June 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Quisitive Technology

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Quisitive Technology Solutions are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Quisitive Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Atos SE and Quisitive Technology

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

The idea behind Atos SE and Quisitive Technology Solutions 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.