Correlation Between COSMOSTEEL HLDGS and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both COSMOSTEEL HLDGS and ATRYS 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 COSMOSTEEL HLDGS and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COSMOSTEEL HLDGS and ATRYS HEALTH SA, you can compare the effects of market volatilities on COSMOSTEEL HLDGS and ATRYS 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 COSMOSTEEL HLDGS with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of COSMOSTEEL HLDGS and ATRYS HEALTH.
Diversification Opportunities for COSMOSTEEL HLDGS and ATRYS HEALTH
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between COSMOSTEEL and ATRYS is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding COSMOSTEEL HLDGS and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS are associated (or correlated) with ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of COSMOSTEEL HLDGS i.e., COSMOSTEEL HLDGS and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between COSMOSTEEL HLDGS and ATRYS HEALTH
Assuming the 90 days trading horizon COSMOSTEEL HLDGS is expected to generate 1.3 times more return on investment than ATRYS HEALTH. However, COSMOSTEEL HLDGS is 1.3 times more volatile than ATRYS HEALTH SA. It trades about 0.14 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about 0.11 per unit of risk. If you would invest 6.05 in COSMOSTEEL HLDGS on September 27, 2024 and sell it today you would earn a total of 0.70 from holding COSMOSTEEL HLDGS or generate 11.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
COSMOSTEEL HLDGS vs. ATRYS HEALTH SA
Performance |
Timeline |
COSMOSTEEL HLDGS |
ATRYS HEALTH SA |
COSMOSTEEL HLDGS and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with COSMOSTEEL HLDGS and ATRYS HEALTH
The main advantage of trading using opposite COSMOSTEEL HLDGS and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COSMOSTEEL HLDGS position performs unexpectedly, ATRYS 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH's long position.The idea behind COSMOSTEEL HLDGS and ATRYS HEALTH 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.ATRYS HEALTH vs. Novo Nordisk AS | ||
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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