Correlation Between ATRYS HEALTH and EHEALTH
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and EHEALTH 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 EHEALTH 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 EHEALTH, you can compare the effects of market volatilities on ATRYS HEALTH and EHEALTH 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 EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and EHEALTH.
Diversification Opportunities for ATRYS HEALTH and EHEALTH
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and EHEALTH is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH 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 EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and EHEALTH go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and EHEALTH
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the EHEALTH. But the stock apears to be less risky and, when comparing its historical volatility, ATRYS HEALTH SA is 1.87 times less risky than EHEALTH. The stock trades about -0.07 of its potential returns per unit of risk. The EHEALTH is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 486.00 in EHEALTH on September 3, 2024 and sell it today you would earn a total of 9.00 from holding EHEALTH or generate 1.85% 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. EHEALTH
Performance |
| Timeline |
| ATRYS HEALTH SA |
| EHEALTH |
ATRYS HEALTH and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and EHEALTH
The main advantage of trading using opposite ATRYS HEALTH and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH'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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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