Correlation Between ATRYS HEALTH and New Residential
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and New Residential 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 ATRYS HEALTH and New Residential into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRYS HEALTH SA and New Residential Investment, you can compare the effects of market volatilities on ATRYS HEALTH and New Residential 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 ATRYS HEALTH with a short position of New Residential. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and New Residential.
Diversification Opportunities for ATRYS HEALTH and New Residential
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATRYS and New is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and New Residential Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Residential Inve and ATRYS HEALTH 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 ATRYS HEALTH SA are associated (or correlated) with New Residential. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Residential Inve has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and New Residential go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and New Residential
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the New Residential. In addition to that, ATRYS HEALTH is 2.27 times more volatile than New Residential Investment. It trades about -0.05 of its total potential returns per unit of risk. New Residential Investment is currently generating about 0.21 per unit of volatility. If you would invest 1,017 in New Residential Investment on September 14, 2024 and sell it today you would earn a total of 44.00 from holding New Residential Investment or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. New Residential Investment
Performance |
| Timeline |
| ATRYS HEALTH SA |
| New Residential Inve |
ATRYS HEALTH and New Residential Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and New Residential
The main advantage of trading using opposite ATRYS HEALTH and New Residential positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, New Residential 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 New Residential will offset losses from the drop in New Residential's long position.| ATRYS HEALTH vs. Moderna | ATRYS HEALTH vs. BioNTech SE | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB |
| New Residential vs. ATRYS HEALTH SA | New Residential vs. EHEALTH | New Residential vs. Natural Health Trends | New Residential vs. National Beverage 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 the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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