Correlation Between ATRYS HEALTH and Associated British
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Associated British 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 Associated British 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 Associated British Foods, you can compare the effects of market volatilities on ATRYS HEALTH and Associated British 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 Associated British. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Associated British.
Diversification Opportunities for ATRYS HEALTH and Associated British
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATRYS and Associated is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Associated British Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated British Foods 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 Associated British. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated British Foods has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Associated British go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Associated British
Assuming the 90 days horizon ATRYS HEALTH SA is expected to generate 2.5 times more return on investment than Associated British. However, ATRYS HEALTH is 2.5 times more volatile than Associated British Foods. It trades about 0.02 of its potential returns per unit of risk. Associated British Foods is currently generating about -0.21 per unit of risk. If you would invest 300.00 in ATRYS HEALTH SA on September 24, 2024 and sell it today you would earn a total of 1.00 from holding ATRYS HEALTH SA or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. Associated British Foods
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Associated British Foods |
ATRYS HEALTH and Associated British Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Associated British
The main advantage of trading using opposite ATRYS HEALTH and Associated British positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, Associated British 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 Associated British will offset losses from the drop in Associated British's long position.| ATRYS HEALTH vs. Novo Nordisk AS | ATRYS HEALTH vs. Mercedes Benz Group AG | ATRYS HEALTH vs. Vertex Pharmaceuticals Incorporated | ATRYS HEALTH vs. Moderna |
| Associated British vs. Mowi ASA | Associated British vs. LEROY SEAFOOD GRUNSPADR | Associated British vs. Lery Seafood Group | Associated British vs. Nisshin Seifun Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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