Correlation Between H FARM and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both H FARM and ATRYS HEALTH 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 H FARM and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between H FARM SPA and ATRYS HEALTH SA, you can compare the effects of market volatilities on H FARM and ATRYS HEALTH 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 H FARM with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of H FARM and ATRYS HEALTH.
Diversification Opportunities for H FARM and ATRYS HEALTH
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5JQ and ATRYS is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding H FARM SPA and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA and H FARM 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 H FARM SPA are associated (or correlated) with ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of H FARM i.e., H FARM and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between H FARM and ATRYS HEALTH
Assuming the 90 days horizon H FARM SPA is expected to generate 1.72 times more return on investment than ATRYS HEALTH. However, H FARM is 1.72 times more volatile than ATRYS HEALTH SA. It trades about 0.1 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about 0.02 per unit of risk. If you would invest 11.00 in H FARM SPA on September 23, 2024 and sell it today you would earn a total of 1.00 from holding H FARM SPA or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
H FARM SPA vs. ATRYS HEALTH SA
Performance |
| Timeline |
| H FARM SPA |
| ATRYS HEALTH SA |
H FARM and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with H FARM and ATRYS HEALTH
The main advantage of trading using opposite H FARM and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H FARM position performs unexpectedly, ATRYS HEALTH 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH's long position.| H FARM vs. Blackstone Group | H FARM vs. The Bank of | H FARM vs. Ameriprise Financial | H FARM vs. State Street |
| ATRYS HEALTH vs. Q2M Managementberatung AG | ATRYS HEALTH vs. HF FOODS GRP | ATRYS HEALTH vs. PT Indofood Sukses | ATRYS HEALTH vs. ASSOC BR FOODS |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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