Correlation Between Glencore PLC and Atos SE

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

By analyzing existing cross correlation between Glencore PLC and Atos SE, you can compare the effects of market volatilities on Glencore PLC and Atos SE 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 Glencore PLC with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glencore PLC and Atos SE.

Diversification Opportunities for Glencore PLC and Atos SE

-0.64

Correlation Coefficient

Glencore PLC  Atos SE

Excellent diversification

The 3 months correlation between Glencore and Atos is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Glencore PLC and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Glencore PLC 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 Glencore PLC are associated (or correlated) with Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of Glencore PLC i.e., Glencore PLC and Atos SE go up and down completely randomly.

Pair Corralation between Glencore PLC and Atos SE

Assuming the 90 days horizon Glencore PLC is expected to generate 0.83 times more return on investment than Atos SE. However, Glencore PLC is 1.21 times less risky than Atos SE. It trades about 0.13 of its potential returns per unit of risk. Atos SE is currently generating about -0.11 per unit of risk. If you would invest  337.00  in Glencore PLC on May 4, 2025 and sell it today you would earn a total of  60.00  from holding Glencore PLC or generate 17.8% return on investment over 90 days.

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

Glencore PLC  vs.  Atos SE

Glencore PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Glencore PLC are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Glencore PLC reported solid returns over the last few months and may actually be approaching a breakup point.

Atos SE

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atos SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Glencore PLC and Atos SE

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

The idea behind Glencore PLC and Atos SE 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.