Correlation Between ATRYS HEALTH and BROOKDALE
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and BROOKDALE 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 BROOKDALE 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 BROOKDALE SR LIVING, you can compare the effects of market volatilities on ATRYS HEALTH and BROOKDALE 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 BROOKDALE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and BROOKDALE.
Diversification Opportunities for ATRYS HEALTH and BROOKDALE
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ATRYS and BROOKDALE is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and BROOKDALE SR LIVING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BROOKDALE SR LIVING 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 BROOKDALE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BROOKDALE SR LIVING has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and BROOKDALE go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and BROOKDALE
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the BROOKDALE. But the stock apears to be less risky and, when comparing its historical volatility, ATRYS HEALTH SA is 1.01 times less risky than BROOKDALE. The stock trades about -0.03 of its potential returns per unit of risk. The BROOKDALE SR LIVING is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 468.00 in BROOKDALE SR LIVING on September 14, 2024 and sell it today you would earn a total of 42.00 from holding BROOKDALE SR LIVING or generate 8.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. BROOKDALE SR LIVING
Performance |
| Timeline |
| ATRYS HEALTH SA |
| BROOKDALE SR LIVING |
ATRYS HEALTH and BROOKDALE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and BROOKDALE
The main advantage of trading using opposite ATRYS HEALTH and BROOKDALE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, BROOKDALE 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 BROOKDALE will offset losses from the drop in BROOKDALE's long position.| ATRYS HEALTH vs. Moderna | ATRYS HEALTH vs. BioNTech SE | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB |
| BROOKDALE vs. Boyd Gaming | BROOKDALE vs. Scientific Games | BROOKDALE vs. Evolution Mining Limited | BROOKDALE vs. GAMESTOP |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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