Correlation Between ATOSS SOFTWARE and Engie SA

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

By analyzing existing cross correlation between ATOSS SOFTWARE and Engie SA, you can compare the effects of market volatilities on ATOSS SOFTWARE and Engie SA 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 Engie SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATOSS SOFTWARE and Engie SA.

Diversification Opportunities for ATOSS SOFTWARE and Engie SA

0.66

Correlation Coefficient

ATOSS SOFTWARE  Engie SA

Poor diversification

The 3 months correlation between ATOSS and Engie is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding ATOSS SOFTWARE and Engie SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Engie SA 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 Engie SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Engie SA has no effect on the direction of ATOSS SOFTWARE i.e., ATOSS SOFTWARE and Engie SA go up and down completely randomly.

Pair Corralation between ATOSS SOFTWARE and Engie SA

Assuming the 90 days trading horizon ATOSS SOFTWARE is expected to generate 1.05 times less return on investment than Engie SA. In addition to that, ATOSS SOFTWARE is 1.44 times more volatile than Engie SA. It trades about 0.1 of its total potential returns per unit of risk. Engie SA is currently generating about 0.16 per unit of volatility. If you would invest  1,752  in Engie SA on April 20, 2025 and sell it today you would earn a total of  191.00  from holding Engie SA or generate 10.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

ATOSS SOFTWARE  vs.  Engie SA

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 fragile basic indicators, ATOSS SOFTWARE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Engie SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Engie SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Engie SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with ATOSS SOFTWARE and Engie SA

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

The idea behind ATOSS SOFTWARE and Engie SA 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.