Correlation Between Attendo AB and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Attendo AB and NYSE Composite 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 Attendo AB and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Attendo AB and NYSE Composite, you can compare the effects of market volatilities on Attendo AB and NYSE Composite 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 Attendo AB with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Attendo AB and NYSE Composite.
Diversification Opportunities for Attendo AB and NYSE Composite
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Attendo and NYSE is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Attendo AB and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Attendo AB 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 Attendo AB are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Attendo AB i.e., Attendo AB and NYSE Composite go up and down completely randomly.
Pair Corralation between Attendo AB and NYSE Composite
Assuming the 90 days trading horizon Attendo AB is expected to generate 3.49 times more return on investment than NYSE Composite. However, Attendo AB is 3.49 times more volatile than NYSE Composite. It trades about 0.09 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.22 per unit of risk. If you would invest 4,050 in Attendo AB on January 31, 2024 and sell it today you would earn a total of 155.00 from holding Attendo AB or generate 3.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Attendo AB vs. NYSE Composite
Performance |
Timeline |
Attendo AB and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Attendo AB
Pair trading matchups for Attendo AB
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Attendo AB and NYSE Composite
The main advantage of trading using opposite Attendo AB and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Attendo AB position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Attendo AB vs. Humana AB | Attendo AB vs. Ambea AB | Attendo AB vs. Dometic Group AB | Attendo AB vs. Bonava AB |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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