Correlation Between ATRYS HEALTH and AURUBIS AG
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and AURUBIS AG 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 AURUBIS AG 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 AURUBIS AG UNSPADR, you can compare the effects of market volatilities on ATRYS HEALTH and AURUBIS AG 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 AURUBIS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and AURUBIS AG.
Diversification Opportunities for ATRYS HEALTH and AURUBIS AG
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ATRYS and AURUBIS is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and AURUBIS AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AURUBIS AG UNSPADR 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 AURUBIS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AURUBIS AG UNSPADR has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and AURUBIS AG go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and AURUBIS AG
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the AURUBIS AG. But the stock apears to be less risky and, when comparing its historical volatility, ATRYS HEALTH SA is 1.48 times less risky than AURUBIS AG. The stock trades about -0.05 of its potential returns per unit of risk. The AURUBIS AG UNSPADR is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 4,100 in AURUBIS AG UNSPADR on September 14, 2024 and sell it today you would lose (60.00) from holding AURUBIS AG UNSPADR or give up 1.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. AURUBIS AG UNSPADR
Performance |
| Timeline |
| ATRYS HEALTH SA |
| AURUBIS AG UNSPADR |
ATRYS HEALTH and AURUBIS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and AURUBIS AG
The main advantage of trading using opposite ATRYS HEALTH and AURUBIS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, AURUBIS AG 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 AURUBIS AG will offset losses from the drop in AURUBIS AG's long position.| ATRYS HEALTH vs. Moderna | ATRYS HEALTH vs. BioNTech SE | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB |
| AURUBIS AG vs. MUTUIONLINE | AURUBIS AG vs. CODERE ONLINE LUX | AURUBIS AG vs. SALESFORCE INC CDR | AURUBIS AG vs. ATRYS HEALTH SA |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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