Correlation Between Nitto Denko and Atos SE

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nitto Denko 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 Nitto Denko and Atos SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nitto Denko Corp and Atos SE, you can compare the effects of market volatilities on Nitto Denko 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 Nitto Denko with a short position of Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nitto Denko and Atos SE.

Diversification Opportunities for Nitto Denko and Atos SE

-0.62
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Nitto and Atos is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nitto Denko Corp and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and Nitto Denko 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 Nitto Denko Corp 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 Nitto Denko i.e., Nitto Denko and Atos SE go up and down completely randomly.

Pair Corralation between Nitto Denko and Atos SE

Assuming the 90 days horizon Nitto Denko Corp is expected to generate 0.67 times more return on investment than Atos SE. However, Nitto Denko Corp is 1.48 times less risky than Atos SE. It trades about 0.14 of its potential returns per unit of risk. Atos SE is currently generating about -0.11 per unit of risk. If you would invest  1,838  in Nitto Denko Corp on May 5, 2025 and sell it today you would earn a total of  289.00  from holding Nitto Denko Corp or generate 15.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy96.92%
ValuesDaily Returns

Nitto Denko Corp  vs.  Atos SE

 Performance 
       Timeline  
Nitto Denko Corp 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Nitto Denko Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward-looking signals, Nitto Denko showed solid returns over the last few months and may actually be approaching a breakup point.
Atos SE 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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.

Nitto Denko and Atos SE Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nitto Denko and Atos SE

The main advantage of trading using opposite Nitto Denko and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nitto Denko 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 Nitto Denko Corp 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.
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Complementary Tools

Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Money Managers
Screen money managers from public funds and ETFs managed around the world
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated