Correlation Between ATRYS HEALTH and Hastings Technology
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Hastings Technology 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 Hastings Technology 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 Hastings Technology Metals, you can compare the effects of market volatilities on ATRYS HEALTH and Hastings Technology 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 Hastings Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Hastings Technology.
Diversification Opportunities for ATRYS HEALTH and Hastings Technology
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATRYS and Hastings is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Hastings Technology Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hastings Technology 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 Hastings Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hastings Technology has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Hastings Technology go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Hastings Technology
Assuming the 90 days horizon ATRYS HEALTH SA is expected to generate 0.35 times more return on investment than Hastings Technology. However, ATRYS HEALTH SA is 2.85 times less risky than Hastings Technology. It trades about -0.05 of its potential returns per unit of risk. Hastings Technology Metals is currently generating about -0.04 per unit of risk. If you would invest 616.00 in ATRYS HEALTH SA on September 14, 2024 and sell it today you would lose (330.00) from holding ATRYS HEALTH SA or give up 53.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. Hastings Technology Metals
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Hastings Technology |
ATRYS HEALTH and Hastings Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Hastings Technology
The main advantage of trading using opposite ATRYS HEALTH and Hastings Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, Hastings Technology 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 Hastings Technology will offset losses from the drop in Hastings Technology's long position.| ATRYS HEALTH vs. Moderna | ATRYS HEALTH vs. BioNTech SE | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB |
| Hastings Technology vs. ATRYS HEALTH SA | Hastings Technology vs. Canadian Utilities Limited | Hastings Technology vs. UNITED UTILITIES GR | Hastings Technology vs. G8 EDUCATION |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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