Correlation Between ATRYS HEALTH and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Perseus Mining 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 Perseus Mining 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 Perseus Mining Limited, you can compare the effects of market volatilities on ATRYS HEALTH and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Perseus Mining.
Diversification Opportunities for ATRYS HEALTH and Perseus Mining
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATRYS and Perseus is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Perseus Mining go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Perseus Mining
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the Perseus Mining. But the stock apears to be less risky and, when comparing its historical volatility, ATRYS HEALTH SA is 1.28 times less risky than Perseus Mining. The stock trades about -0.08 of its potential returns per unit of risk. The Perseus Mining Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 158.00 in Perseus Mining Limited on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Perseus Mining Limited or generate 2.53% 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. Perseus Mining Limited
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Perseus Mining |
ATRYS HEALTH and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Perseus Mining
The main advantage of trading using opposite ATRYS HEALTH and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| ATRYS HEALTH vs. Pentair plc | ATRYS HEALTH vs. SYSTEMAIR AB | ATRYS HEALTH vs. Auto Trader Group | ATRYS HEALTH vs. CANON MARKETING JP |
| Perseus Mining vs. HEALTHCARE REAL A | Perseus Mining vs. GUARDANT HEALTH CL | Perseus Mining vs. AUST AGRICULTURAL | Perseus Mining vs. Bumrungrad Hospital Public |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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