Correlation Between ATRYS HEALTH and HORNBACH Baumarkt
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and HORNBACH Baumarkt 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 HORNBACH Baumarkt 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 HORNBACH Baumarkt AG, you can compare the effects of market volatilities on ATRYS HEALTH and HORNBACH Baumarkt 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 HORNBACH Baumarkt. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and HORNBACH Baumarkt.
Diversification Opportunities for ATRYS HEALTH and HORNBACH Baumarkt
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and HORNBACH is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and HORNBACH Baumarkt AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HORNBACH Baumarkt 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 HORNBACH Baumarkt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HORNBACH Baumarkt has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and HORNBACH Baumarkt go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and HORNBACH Baumarkt
Assuming the 90 days horizon ATRYS HEALTH SA is expected to generate 1.36 times more return on investment than HORNBACH Baumarkt. However, ATRYS HEALTH is 1.36 times more volatile than HORNBACH Baumarkt AG. It trades about -0.06 of its potential returns per unit of risk. HORNBACH Baumarkt AG is currently generating about -0.1 per unit of risk. If you would invest 299.00 in ATRYS HEALTH SA on September 3, 2024 and sell it today you would lose (9.00) from holding ATRYS HEALTH SA or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. HORNBACH Baumarkt AG
Performance |
| Timeline |
| ATRYS HEALTH SA |
| HORNBACH Baumarkt |
ATRYS HEALTH and HORNBACH Baumarkt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and HORNBACH Baumarkt
The main advantage of trading using opposite ATRYS HEALTH and HORNBACH Baumarkt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, HORNBACH Baumarkt 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 HORNBACH Baumarkt will offset losses from the drop in HORNBACH Baumarkt's long position.| ATRYS HEALTH vs. Harmony Gold Mining | ATRYS HEALTH vs. BRIT AMER TOBACCO | ATRYS HEALTH vs. Mobilezone Holding AG | ATRYS HEALTH vs. KENEDIX OFFICE INV |
| HORNBACH Baumarkt vs. Reliance Steel Aluminum | HORNBACH Baumarkt vs. Steel Dynamics | HORNBACH Baumarkt vs. PKSHA TECHNOLOGY INC | HORNBACH Baumarkt vs. United States Steel |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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