Correlation Between ATRYS HEALTH and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Solstad Offshore 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 Solstad Offshore 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 Solstad Offshore ASA, you can compare the effects of market volatilities on ATRYS HEALTH and Solstad Offshore 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 Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Solstad Offshore.
Diversification Opportunities for ATRYS HEALTH and Solstad Offshore
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATRYS and Solstad is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA 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 Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Solstad Offshore go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and Solstad Offshore
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the Solstad Offshore. But the stock apears to be less risky and, when comparing its historical volatility, ATRYS HEALTH SA is 1.71 times less risky than Solstad Offshore. The stock trades about -0.05 of its potential returns per unit of risk. The Solstad Offshore ASA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 455.00 in Solstad Offshore ASA on September 1, 2024 and sell it today you would lose (106.00) from holding Solstad Offshore ASA or give up 23.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRYS HEALTH SA vs. Solstad Offshore ASA
Performance |
| Timeline |
| ATRYS HEALTH SA |
| Solstad Offshore ASA |
ATRYS HEALTH and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and Solstad Offshore
The main advantage of trading using opposite ATRYS HEALTH and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| ATRYS HEALTH vs. VARIOUS EATERIES LS | ATRYS HEALTH vs. National Storage Affiliates | ATRYS HEALTH vs. VIVA WINE GROUP | ATRYS HEALTH vs. ITALIAN WINE BRANDS |
| Solstad Offshore vs. Tradeweb Markets | Solstad Offshore vs. National Retail Properties | Solstad Offshore vs. Zoom Video Communications | Solstad Offshore vs. Auto Trader Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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