Correlation Between CSX Corp and Atai Life

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

Diversification Opportunities for CSX Corp and Atai Life

0.53
  Correlation Coefficient

Very weak diversification

The 3 months correlation between CSX Corp and Atai Life is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CSX Corp and Atai Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atai Life Sciences and CSX Corp 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 CSX Corp are associated (or correlated) with Atai Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atai Life Sciences has no effect on the direction of CSX Corp i.e., CSX Corp and Atai Life go up and down completely randomly.

Pair Corralation between CSX Corp and Atai Life

Considering the 90-day investment horizon CSX Corp is expected to generate 0.35 times more return on investment than Atai Life. However, CSX Corp is 2.87 times less risky than Atai Life. It trades about 0.01 of its potential returns per unit of risk. Atai Life Sciences is currently generating about -0.08 per unit of risk. If you would invest  3,193  in CSX Corp on August 28, 2022 and sell it today you would earn a total of  9.00  from holding CSX Corp or generate 0.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

CSX Corp  vs.  Atai Life Sciences

 Performance (%) 
       Timeline  
CSX Corp 
CSX Corp Performance
0 of 100
Over the last 90 days CSX Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, CSX Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

CSX Corp Price Channel

Atai Life Sciences 
Atai Life Performance
0 of 100
Over the last 90 days Atai Life Sciences has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Atai Life Price Channel

CSX Corp and Atai Life Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CSX Corp and Atai Life

The main advantage of trading using opposite CSX Corp and Atai Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSX Corp position performs unexpectedly, Atai Life 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 Atai Life will offset losses from the drop in Atai Life's long position.
CSX Corp vs. Brinks Company
CSX Corp vs. Expeditors Intl
CSX Corp vs. Fedex Corp
CSX Corp vs. Hub Group
The idea behind CSX Corp and Atai Life Sciences 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.
Atai Life vs. Agilent Technologies
Atai Life vs. AMETEK Inc
Atai Life vs. Euro Tech Holdings
Atai Life vs. Curtiss-Wright Corp
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go