Correlation Between Atlas Technology and China Health
Can any of the company-specific risk be diversified away by investing in both Atlas Technology and China Health 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 Atlas Technology and China Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlas Technology Grp and China Health Management, you can compare the effects of market volatilities on Atlas Technology and China Health 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 Atlas Technology with a short position of China Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlas Technology and China Health.
Diversification Opportunities for Atlas Technology and China Health
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Atlas and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Atlas Technology Grp and China Health Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Health Management and Atlas Technology 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 Atlas Technology Grp are associated (or correlated) with China Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Health Management has no effect on the direction of Atlas Technology i.e., Atlas Technology and China Health go up and down completely randomly.
Pair Corralation between Atlas Technology and China Health
Given the investment horizon of 90 days Atlas Technology Grp is expected to generate 5.75 times more return on investment than China Health. However, Atlas Technology is 5.75 times more volatile than China Health Management. It trades about 0.12 of its potential returns per unit of risk. China Health Management is currently generating about 0.06 per unit of risk. If you would invest 0.01 in Atlas Technology Grp on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Atlas Technology Grp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlas Technology Grp vs. China Health Management
Performance |
| Timeline |
| Atlas Technology Grp |
| China Health Management |
Atlas Technology and China Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlas Technology and China Health
The main advantage of trading using opposite Atlas Technology and China Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlas Technology position performs unexpectedly, China Health 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 China Health will offset losses from the drop in China Health's long position.| Atlas Technology vs. Absolute Health and | Atlas Technology vs. China Health Management | Atlas Technology vs. Embrace Change Acquisition | Atlas Technology vs. TransAKT |
| China Health vs. Boxlight Corp Class | China Health vs. Siyata Mobile | China Health vs. ClearOne | China Health vs. HUMANA INC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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