Correlation Between Atrys Health and NH Hoteles
Can any of the company-specific risk be diversified away by investing in both Atrys Health and NH Hoteles 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 NH Hoteles 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 NH Hoteles, you can compare the effects of market volatilities on Atrys Health and NH Hoteles 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 NH Hoteles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrys Health and NH Hoteles.
Diversification Opportunities for Atrys Health and NH Hoteles
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Atrys and NHH is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Atrys Health SL and NH Hoteles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Hoteles 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 NH Hoteles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Hoteles has no effect on the direction of Atrys Health i.e., Atrys Health and NH Hoteles go up and down completely randomly.
Pair Corralation between Atrys Health and NH Hoteles
Assuming the 90 days trading horizon Atrys Health SL is expected to generate 11.15 times more return on investment than NH Hoteles. However, Atrys Health is 11.15 times more volatile than NH Hoteles. It trades about 0.09 of its potential returns per unit of risk. NH Hoteles is currently generating about 0.0 per unit of risk. If you would invest 354.00 in Atrys Health SL on October 26, 2024 and sell it today you would earn a total of 10.00 from holding Atrys Health SL or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Atrys Health SL vs. NH Hoteles
Performance |
| Timeline |
| Atrys Health SL |
| NH Hoteles |
Atrys Health and NH Hoteles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrys Health and NH Hoteles
The main advantage of trading using opposite Atrys Health and NH Hoteles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrys Health position performs unexpectedly, NH Hoteles 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 NH Hoteles will offset losses from the drop in NH Hoteles' 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 |
| NH Hoteles vs. Melia Hotels | NH Hoteles vs. Indra A | NH Hoteles vs. Fomento de Construcciones | NH Hoteles vs. Acerinox |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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