Correlation Between ATRYS HEALTH and DiamondRock Hospitality
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and DiamondRock Hospitality 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 DiamondRock Hospitality 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 DiamondRock Hospitality, you can compare the effects of market volatilities on ATRYS HEALTH and DiamondRock Hospitality 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 DiamondRock Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and DiamondRock Hospitality.
Diversification Opportunities for ATRYS HEALTH and DiamondRock Hospitality
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and DiamondRock is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and DiamondRock Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DiamondRock Hospitality 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 DiamondRock Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DiamondRock Hospitality has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and DiamondRock Hospitality go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and DiamondRock Hospitality
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the DiamondRock Hospitality. But the stock apears to be less risky and, when comparing its historical volatility, ATRYS HEALTH SA is 1.48 times less risky than DiamondRock Hospitality. The stock trades about -0.05 of its potential returns per unit of risk. The DiamondRock Hospitality is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 814.00 in DiamondRock Hospitality on August 24, 2024 and sell it today you would earn a total of 51.00 from holding DiamondRock Hospitality or generate 6.27% 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. DiamondRock Hospitality
Performance |
| Timeline |
| ATRYS HEALTH SA |
| DiamondRock Hospitality |
ATRYS HEALTH and DiamondRock Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and DiamondRock Hospitality
The main advantage of trading using opposite ATRYS HEALTH and DiamondRock Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, DiamondRock Hospitality 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 DiamondRock Hospitality will offset losses from the drop in DiamondRock Hospitality's long position.| ATRYS HEALTH vs. CSL Limited | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. NMI Holdings | ATRYS HEALTH vs. Origin Agritech |
| DiamondRock Hospitality vs. FOUR NERS PROPERTY | DiamondRock Hospitality vs. BRAEMAR HOTELS RES | DiamondRock Hospitality vs. Sotherly Hotels |
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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