Correlation Between Sumitomo Mitsui and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Sumitomo Mitsui 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 Sumitomo Mitsui and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumitomo Mitsui Construction and ATRYS HEALTH SA, you can compare the effects of market volatilities on Sumitomo Mitsui 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 Sumitomo Mitsui with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumitomo Mitsui and ATRYS HEALTH.
Diversification Opportunities for Sumitomo Mitsui and ATRYS HEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sumitomo and ATRYS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sumitomo Mitsui Construction 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 Sumitomo Mitsui 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 Sumitomo Mitsui Construction 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 Sumitomo Mitsui i.e., Sumitomo Mitsui and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Sumitomo Mitsui and ATRYS HEALTH
Assuming the 90 days horizon Sumitomo Mitsui Construction is expected to generate 0.63 times more return on investment than ATRYS HEALTH. However, Sumitomo Mitsui Construction is 1.58 times less risky than ATRYS HEALTH. It trades about -0.01 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.05 per unit of risk. If you would invest 292.00 in Sumitomo Mitsui Construction on September 23, 2024 and sell it today you would lose (44.00) from holding Sumitomo Mitsui Construction or give up 15.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sumitomo Mitsui Construction vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Sumitomo Mitsui Cons |
| ATRYS HEALTH SA |
Sumitomo Mitsui and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumitomo Mitsui and ATRYS HEALTH
The main advantage of trading using opposite Sumitomo Mitsui and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumitomo Mitsui 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.| Sumitomo Mitsui vs. APPLIED MATERIALS | Sumitomo Mitsui vs. Cogent Communications Holdings | Sumitomo Mitsui vs. Mobilezone Holding AG | Sumitomo Mitsui vs. Highlight Communications AG |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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