Correlation Between ATRYS HEALTH and Sumitomo Mitsui
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Sumitomo Mitsui 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 Sumitomo Mitsui 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 Sumitomo Mitsui Construction, you can compare the effects of market volatilities on ATRYS HEALTH and Sumitomo Mitsui 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 Sumitomo Mitsui. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Sumitomo Mitsui.
Diversification Opportunities for ATRYS HEALTH and Sumitomo Mitsui
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATRYS and Sumitomo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Sumitomo Mitsui Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Mitsui Cons 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 Sumitomo Mitsui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Mitsui Cons has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Sumitomo Mitsui go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Sumitomo Mitsui
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the Sumitomo Mitsui. In addition to that, ATRYS HEALTH is 1.58 times more volatile than Sumitomo Mitsui Construction. It trades about -0.05 of its total potential returns per unit of risk. Sumitomo Mitsui Construction is currently generating about -0.01 per unit of volatility. 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 |
ATRYS HEALTH SA vs. Sumitomo Mitsui Construction
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Sumitomo Mitsui Cons |
ATRYS HEALTH and Sumitomo Mitsui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Sumitomo Mitsui
The main advantage of trading using opposite ATRYS HEALTH and Sumitomo Mitsui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, Sumitomo Mitsui 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 Sumitomo Mitsui will offset losses from the drop in Sumitomo Mitsui's long position.| ATRYS HEALTH vs. Q2M Managementberatung AG | ATRYS HEALTH vs. HF FOODS GRP | ATRYS HEALTH vs. PT Indofood Sukses | ATRYS HEALTH vs. ASSOC BR FOODS |
| Sumitomo Mitsui vs. APPLIED MATERIALS | Sumitomo Mitsui vs. Cogent Communications Holdings | Sumitomo Mitsui vs. Mobilezone Holding AG | Sumitomo Mitsui vs. Highlight Communications AG |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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