Correlation Between ATOSS SOFTWARE and Cincinnati Financial

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

By analyzing existing cross correlation between ATOSS SOFTWARE and Cincinnati Financial Corp, you can compare the effects of market volatilities on ATOSS SOFTWARE and Cincinnati Financial 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 ATOSS SOFTWARE with a short position of Cincinnati Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and Cincinnati Financial.

Diversification Opportunities for ATOSS SOFTWARE and Cincinnati Financial

0.07

Correlation Coefficient

ATOSS SOFTWARE  Cincinnati Financial

Significant diversification

The 3 months correlation between ATOSS and Cincinnati is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and Cincinnati Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cincinnati Financial Corp and ATOSS SOFTWARE 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 ATOSS SOFTWARE are associated (or correlated) with Cincinnati Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cincinnati Financial Corp has no effect on the direction of ATOSS SOFTWARE i.e., ATOSS SOFTWARE and Cincinnati Financial go up and down completely randomly.

Pair Corralation between ATOSS SOFTWARE and Cincinnati Financial

Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to generate 1.21 times less return on investment than Cincinnati Financial. In addition to that, ATOSS SOFTWARE is 1.13 times more volatile than Cincinnati Financial Corp. It trades about 0.1 of its total potential returns per unit of risk. Cincinnati Financial Corp is currently generating about 0.14 per unit of volatility. If you would invest  11,502  in Cincinnati Financial Corp on April 22, 2025 and sell it today you would earn a total of  1,403  from holding Cincinnati Financial Corp or generate 12.2% return on investment over 90 days.

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

ATOSS SOFTWARE  vs.  Cincinnati Financial Corp

ATOSS SOFTWARE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATOSS SOFTWARE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ATOSS SOFTWARE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cincinnati Financial Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cincinnati Financial Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Cincinnati Financial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ATOSS SOFTWARE and Cincinnati Financial

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

The idea behind ATOSS SOFTWARE and Cincinnati Financial Corp 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.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.