Correlation Between China Health and Atlas Technology
Can any of the company-specific risk be diversified away by investing in both China Health and Atlas Technology 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 China Health and Atlas Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Health Management and Atlas Technology Grp, you can compare the effects of market volatilities on China Health and Atlas Technology 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 China Health with a short position of Atlas Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Health and Atlas Technology.
Diversification Opportunities for China Health and Atlas Technology
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Atlas is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding China Health Management and Atlas Technology Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Technology Grp and China 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 China Health Management are associated (or correlated) with Atlas Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Technology Grp has no effect on the direction of China Health i.e., China Health and Atlas Technology go up and down completely randomly.
Pair Corralation between China Health and Atlas Technology
Given the investment horizon of 90 days China Health is expected to generate 1.8 times less return on investment than Atlas Technology. But when comparing it to its historical volatility, China Health Management is 1.36 times less risky than Atlas Technology. It trades about 0.17 of its potential returns per unit of risk. Atlas Technology Grp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Atlas Technology Grp on October 26, 2024 and sell it today you would earn a total of 0.01 from holding Atlas Technology Grp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Health Management vs. Atlas Technology Grp
Performance |
| Timeline |
| China Health Management |
| Atlas Technology Grp |
China Health and Atlas Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Health and Atlas Technology
The main advantage of trading using opposite China Health and Atlas Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Health position performs unexpectedly, Atlas Technology 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 Atlas Technology will offset losses from the drop in Atlas Technology's long position.| China Health vs. Absolute Health and | China Health vs. Embrace Change Acquisition | China Health vs. Supurva Healthcare Group | China Health vs. TransAKT |
| Atlas Technology vs. Gold Ent Group | Atlas Technology vs. Absolute Health and | Atlas Technology vs. Alpha Wastewater | Atlas Technology vs. Supurva Healthcare Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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