Correlation Between ATRYS HEALTH and SK TELECOM
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and SK TELECOM 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 SK TELECOM 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 SK TELECOM TDADR, you can compare the effects of market volatilities on ATRYS HEALTH and SK TELECOM 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 SK TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and SK TELECOM.
Diversification Opportunities for ATRYS HEALTH and SK TELECOM
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and KMBA is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and SK TELECOM TDADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK TELECOM TDADR 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 SK TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK TELECOM TDADR has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and SK TELECOM go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and SK TELECOM
Assuming the 90 days horizon ATRYS HEALTH is expected to generate 3.16 times less return on investment than SK TELECOM. In addition to that, ATRYS HEALTH is 1.51 times more volatile than SK TELECOM TDADR. It trades about 0.01 of its total potential returns per unit of risk. SK TELECOM TDADR is currently generating about 0.06 per unit of volatility. If you would invest 1,900 in SK TELECOM TDADR on September 3, 2024 and sell it today you would earn a total of 360.00 from holding SK TELECOM TDADR or generate 18.95% 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. SK TELECOM TDADR
Performance |
| Timeline |
| ATRYS HEALTH SA |
| SK TELECOM TDADR |
ATRYS HEALTH and SK TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and SK TELECOM
The main advantage of trading using opposite ATRYS HEALTH and SK TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, SK TELECOM 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 SK TELECOM will offset losses from the drop in SK TELECOM'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 |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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