Correlation Between Atrys Health and Squirrel Media
Can any of the company-specific risk be diversified away by investing in both Atrys Health and Squirrel Media 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 Squirrel Media 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 Squirrel Media SA, you can compare the effects of market volatilities on Atrys Health and Squirrel Media 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 Squirrel Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atrys Health and Squirrel Media.
Diversification Opportunities for Atrys Health and Squirrel Media
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atrys and Squirrel is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Atrys Health SL and Squirrel Media SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Squirrel Media 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 Squirrel Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Squirrel Media SA has no effect on the direction of Atrys Health i.e., Atrys Health and Squirrel Media go up and down completely randomly.
Pair Corralation between Atrys Health and Squirrel Media
Assuming the 90 days trading horizon Atrys Health SL is expected to generate 0.99 times more return on investment than Squirrel Media. However, Atrys Health SL is 1.01 times less risky than Squirrel Media. It trades about 0.01 of its potential returns per unit of risk. Squirrel Media SA is currently generating about -0.1 per unit of risk. If you would invest 320.00 in Atrys Health SL on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Atrys Health SL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atrys Health SL vs. Squirrel Media SA
Performance |
| Timeline |
| Atrys Health SL |
| Squirrel Media SA |
Atrys Health and Squirrel Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atrys Health and Squirrel Media
The main advantage of trading using opposite Atrys Health and Squirrel Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atrys Health position performs unexpectedly, Squirrel Media 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 Squirrel Media will offset losses from the drop in Squirrel Media'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 |
| Squirrel Media vs. Amadeus IT Group | Squirrel Media vs. Indra A | Squirrel Media vs. Global Dominion Access | Squirrel Media vs. Amper SA |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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