Correlation Between ATRYS HEALTH and Sea
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Sea 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 Sea 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 Sea Limited, you can compare the effects of market volatilities on ATRYS HEALTH and Sea 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 Sea. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Sea.
Diversification Opportunities for ATRYS HEALTH and Sea
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and Sea is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Sea Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sea Limited 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 Sea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sea Limited has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Sea go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Sea
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the Sea. In addition to that, ATRYS HEALTH is 1.03 times more volatile than Sea Limited. It trades about -0.09 of its total potential returns per unit of risk. Sea Limited is currently generating about 0.13 per unit of volatility. If you would invest 10,140 in Sea Limited on September 13, 2024 and sell it today you would earn a total of 520.00 from holding Sea Limited or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. Sea Limited
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Sea Limited |
ATRYS HEALTH and Sea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Sea
The main advantage of trading using opposite ATRYS HEALTH and Sea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, Sea 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 Sea will offset losses from the drop in Sea's long position.| ATRYS HEALTH vs. Moderna | ATRYS HEALTH vs. BioNTech SE | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB |
| Sea vs. Wayside Technology Group | Sea vs. Carsales | Sea vs. Grupo Carso SAB | Sea vs. Sunny Optical Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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