Correlation Between Atrys Health and Amper SA
Can any of the company-specific risk be diversified away by investing in both Atrys Health and Amper SA 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 Amper SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atrys Health SL and Amper SA, you can compare the effects of market volatilities on Atrys Health and Amper SA 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 Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrys Health and Amper SA.
Diversification Opportunities for Atrys Health and Amper SA
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atrys and Amper is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Atrys Health SL and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA 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 SL are associated (or correlated) with Amper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amper SA has no effect on the direction of Atrys Health i.e., Atrys Health and Amper SA go up and down completely randomly.
Pair Corralation between Atrys Health and Amper SA
Assuming the 90 days trading horizon Atrys Health SL is expected to generate 0.55 times more return on investment than Amper SA. However, Atrys Health SL is 1.81 times less risky than Amper SA. It trades about 0.02 of its potential returns per unit of risk. Amper SA is currently generating about -0.1 per unit of risk. If you would invest 321.00 in Atrys Health SL on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Atrys Health SL or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrys Health SL vs. Amper SA
Performance |
| Timeline |
| Atrys Health SL |
| Amper SA |
Atrys Health and Amper SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrys Health and Amper SA
The main advantage of trading using opposite Atrys Health and Amper SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrys Health position performs unexpectedly, Amper SA 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 Amper SA will offset losses from the drop in Amper SA's long position.The idea behind Atrys Health SL and Amper SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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