Correlation Between ATRYS HEALTH and Aluminumof China
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Aluminumof China 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 Aluminumof China 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 Aluminum of, you can compare the effects of market volatilities on ATRYS HEALTH and Aluminumof China 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 Aluminumof China. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Aluminumof China.
Diversification Opportunities for ATRYS HEALTH and Aluminumof China
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ATRYS and Aluminumof is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Aluminum of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminumof China 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 Aluminumof China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminumof China has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Aluminumof China go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Aluminumof China
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the Aluminumof China. But the stock apears to be less risky and, when comparing its historical volatility, ATRYS HEALTH SA is 1.3 times less risky than Aluminumof China. The stock trades about -0.03 of its potential returns per unit of risk. The Aluminum of is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 29.00 in Aluminum of on September 12, 2024 and sell it today you would earn a total of 28.00 from holding Aluminum of or generate 96.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. Aluminum of
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Aluminumof China |
ATRYS HEALTH and Aluminumof China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Aluminumof China
The main advantage of trading using opposite ATRYS HEALTH and Aluminumof China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, Aluminumof China 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 Aluminumof China will offset losses from the drop in Aluminumof China's long position.| ATRYS HEALTH vs. Moderna | ATRYS HEALTH vs. BioNTech SE | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB |
| Aluminumof China vs. Norsk Hydro ASA | Aluminumof China vs. Kaiser Aluminum | Aluminumof China vs. Superior Plus Corp | Aluminumof China vs. SIVERS SEMICONDUCTORS AB |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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