Correlation Between ATRYS HEALTH and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Ramsay Health 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 Ramsay Health 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 Ramsay Health Care, you can compare the effects of market volatilities on ATRYS HEALTH and Ramsay Health 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 Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Ramsay Health.
Diversification Opportunities for ATRYS HEALTH and Ramsay Health
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATRYS and Ramsay is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care 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 Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Ramsay Health go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Ramsay Health
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the Ramsay Health. In addition to that, ATRYS HEALTH is 1.51 times more volatile than Ramsay Health Care. It trades about -0.05 of its total potential returns per unit of risk. Ramsay Health Care is currently generating about -0.06 per unit of volatility. If you would invest 4,057 in Ramsay Health Care on August 24, 2024 and sell it today you would lose (1,737) from holding Ramsay Health Care or give up 42.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. Ramsay Health Care
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Ramsay Health Care |
ATRYS HEALTH and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Ramsay Health
The main advantage of trading using opposite ATRYS HEALTH and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, Ramsay Health 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| ATRYS HEALTH vs. CSL Limited | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. NMI Holdings | ATRYS HEALTH vs. Origin Agritech |
| Ramsay Health vs. Superior Plus Corp | Ramsay Health vs. NMI Holdings | Ramsay Health vs. Origin Agritech | Ramsay Health vs. SIVERS SEMICONDUCTORS AB |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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