Correlation Between AutoStore Holdings and Atlantic Sapphire

Can any of the company-specific risk be diversified away by investing in both AutoStore Holdings and Atlantic Sapphire 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 AutoStore Holdings and Atlantic Sapphire into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AutoStore Holdings and Atlantic Sapphire As, you can compare the effects of market volatilities on AutoStore Holdings and Atlantic Sapphire 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 AutoStore Holdings with a short position of Atlantic Sapphire. Check out your portfolio center. Please also check ongoing floating volatility patterns of AutoStore Holdings and Atlantic Sapphire.

Diversification Opportunities for AutoStore Holdings and Atlantic Sapphire

0.55

Correlation Coefficient

AutoStore Holdings  Atlantic Sapphire

Very weak diversification

The 3 months correlation between AutoStore and Atlantic is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding AutoStore Holdings and Atlantic Sapphire As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Sapphire and AutoStore Holdings 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 AutoStore Holdings are associated (or correlated) with Atlantic Sapphire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Sapphire has no effect on the direction of AutoStore Holdings i.e., AutoStore Holdings and Atlantic Sapphire go up and down completely randomly.

Pair Corralation between AutoStore Holdings and Atlantic Sapphire

Assuming the 90 days trading horizon AutoStore Holdings is expected to generate 27.37 times less return on investment than Atlantic Sapphire. But when comparing it to its historical volatility, AutoStore Holdings is 2.04 times less risky than Atlantic Sapphire. It trades about 0.01 of its potential returns per unit of risk. Atlantic Sapphire As is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  800.00  in Atlantic Sapphire As on April 23, 2025 and sell it today you would earn a total of  188.00  from holding Atlantic Sapphire As or generate 23.5% return on investment over 90 days.

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

AutoStore Holdings  vs.  Atlantic Sapphire As

AutoStore Holdings

Risk-Adjusted Performance

Weak

Over the last 90 days AutoStore Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, AutoStore Holdings is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Atlantic Sapphire

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Atlantic Sapphire As are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Atlantic Sapphire disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AutoStore Holdings and Atlantic Sapphire

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

The idea behind AutoStore Holdings and Atlantic Sapphire As 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.