Correlation Between RLJ Lodging and Atos SE

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

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

Diversification Opportunities for RLJ Lodging and Atos SE

-0.77

Correlation Coefficient

RLJ Lodging  Atos SE

Pay attention - limited upside

The 3 months correlation between RLJ and Atos is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding RLJ Lodging Trust and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE and RLJ Lodging 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 RLJ Lodging Trust 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 RLJ Lodging i.e., RLJ Lodging and Atos SE go up and down completely randomly.

Pair Corralation between RLJ Lodging and Atos SE

Considering the 90-day investment horizon RLJ Lodging Trust is expected to generate 0.66 times more return on investment than Atos SE. However, RLJ Lodging Trust is 1.51 times less risky than Atos SE. It trades about 0.05 of its potential returns per unit of risk. Atos SE is currently generating about -0.12 per unit of risk. If you would invest  711.00  in RLJ Lodging Trust on May 2, 2025 and sell it today you would earn a total of  33.00  from holding RLJ Lodging Trust or generate 4.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

RLJ Lodging Trust  vs.  Atos SE

RLJ Lodging Trust

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in RLJ Lodging Trust are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady essential indicators, RLJ Lodging is not utilizing all of its potentials. The recent stock price chaos, may contribute to medium-term losses for the stakeholders.

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 August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with RLJ Lodging and Atos SE

The main advantage of trading using opposite RLJ Lodging and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RLJ Lodging 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 RLJ Lodging Trust 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.