Correlation Between ATRYS HEALTH and BASF SE
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and BASF SE 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 BASF SE 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 BASF SE, you can compare the effects of market volatilities on ATRYS HEALTH and BASF SE 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 BASF SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and BASF SE.
Diversification Opportunities for ATRYS HEALTH and BASF SE
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATRYS and BASF is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and BASF SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASF SE 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 BASF SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASF SE has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and BASF SE go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and BASF SE
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the BASF SE. In addition to that, ATRYS HEALTH is 1.07 times more volatile than BASF SE. It trades about -0.02 of its total potential returns per unit of risk. BASF SE is currently generating about 0.01 per unit of volatility. If you would invest 1,020 in BASF SE on September 1, 2024 and sell it today you would earn a total of 0.00 from holding BASF SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. BASF SE
Performance |
| Timeline |
| ATRYS HEALTH SA |
| BASF SE |
ATRYS HEALTH and BASF SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and BASF SE
The main advantage of trading using opposite ATRYS HEALTH and BASF SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, BASF SE 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 BASF SE will offset losses from the drop in BASF SE's long position.| ATRYS HEALTH vs. VARIOUS EATERIES LS | ATRYS HEALTH vs. National Storage Affiliates | ATRYS HEALTH vs. VIVA WINE GROUP | ATRYS HEALTH vs. ITALIAN WINE BRANDS |
| BASF SE vs. ARISTOCRAT LEISURE | BASF SE vs. PLAY2CHILL SA ZY | BASF SE vs. Consolidated Communications Holdings | BASF SE vs. PLAYSTUDIOS A DL 0001 |
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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