Correlation Between ATRYS HEALTH and Chongqing Machinery
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Chongqing Machinery 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 Chongqing Machinery 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 Chongqing Machinery Electric, you can compare the effects of market volatilities on ATRYS HEALTH and Chongqing Machinery 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 Chongqing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Chongqing Machinery.
Diversification Opportunities for ATRYS HEALTH and Chongqing Machinery
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATRYS and Chongqing is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Chongqing Machinery Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Machinery 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 Chongqing Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Machinery has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Chongqing Machinery go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Chongqing Machinery
Assuming the 90 days horizon ATRYS HEALTH is expected to generate 4.28 times less return on investment than Chongqing Machinery. But when comparing it to its historical volatility, ATRYS HEALTH SA is 1.03 times less risky than Chongqing Machinery. It trades about 0.02 of its potential returns per unit of risk. Chongqing Machinery Electric is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7.45 in Chongqing Machinery Electric on September 23, 2024 and sell it today you would earn a total of 0.45 from holding Chongqing Machinery Electric or generate 6.04% 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. Chongqing Machinery Electric
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Chongqing Machinery |
ATRYS HEALTH and Chongqing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Chongqing Machinery
The main advantage of trading using opposite ATRYS HEALTH and Chongqing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, Chongqing Machinery 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 Chongqing Machinery will offset losses from the drop in Chongqing Machinery's long position.| ATRYS HEALTH vs. Q2M Managementberatung AG | ATRYS HEALTH vs. HF FOODS GRP | ATRYS HEALTH vs. PT Indofood Sukses | ATRYS HEALTH vs. ASSOC BR FOODS |
| Chongqing Machinery vs. Honeywell International | Chongqing Machinery vs. Schneider Electric SE | Chongqing Machinery vs. Illinois Tool Works | Chongqing Machinery vs. Eaton PLC |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Positions Ratings 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 |