Correlation Between Atrys Health and Mapfre
Can any of the company-specific risk be diversified away by investing in both Atrys Health and Mapfre 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 Mapfre 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 Mapfre, you can compare the effects of market volatilities on Atrys Health and Mapfre 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 Mapfre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrys Health and Mapfre.
Diversification Opportunities for Atrys Health and Mapfre
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atrys and Mapfre is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Atrys Health SL and Mapfre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapfre 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 Mapfre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapfre has no effect on the direction of Atrys Health i.e., Atrys Health and Mapfre go up and down completely randomly.
Pair Corralation between Atrys Health and Mapfre
Assuming the 90 days trading horizon Atrys Health is expected to generate 13.07 times less return on investment than Mapfre. In addition to that, Atrys Health is 1.25 times more volatile than Mapfre. It trades about 0.01 of its total potential returns per unit of risk. Mapfre is currently generating about 0.14 per unit of volatility. If you would invest 248.00 in Mapfre on August 24, 2024 and sell it today you would earn a total of 11.00 from holding Mapfre or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrys Health SL vs. Mapfre
Performance |
| Timeline |
| Atrys Health SL |
| Mapfre |
Atrys Health and Mapfre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrys Health and Mapfre
The main advantage of trading using opposite Atrys Health and Mapfre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrys Health position performs unexpectedly, Mapfre 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 Mapfre will offset losses from the drop in Mapfre's long position.| Atrys Health vs. Gigas Hosting SA | Atrys Health vs. Grenergy Renovables SA | Atrys Health vs. Agile Content SA | Atrys Health vs. Global Dominion Access |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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