Correlation Between Dow Jones and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Dow Jones 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 Dow Jones and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and ATRYS HEALTH SA, you can compare the effects of market volatilities on Dow Jones 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 Dow Jones with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and ATRYS HEALTH.
Diversification Opportunities for Dow Jones and ATRYS HEALTH
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dow and ATRYS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial 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 Dow Jones 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 Dow Jones Industrial 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 Dow Jones i.e., Dow Jones and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Dow Jones and ATRYS HEALTH
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.27 times more return on investment than ATRYS HEALTH. However, Dow Jones Industrial is 3.7 times less risky than ATRYS HEALTH. It trades about 0.12 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.04 per unit of risk. If you would invest 3,383,361 in Dow Jones Industrial on August 31, 2024 and sell it today you would earn a total of 1,107,704 from holding Dow Jones Industrial or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.42% |
| Values | Daily Returns |
Dow Jones Industrial vs. ATRYS HEALTH SA
Performance |
| Timeline |
Dow Jones and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
ATRYS HEALTH SA
Pair trading matchups for ATRYS HEALTH
Pair Trading with Dow Jones and ATRYS HEALTH
The main advantage of trading using opposite Dow Jones and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones 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.| Dow Jones vs. Aerofoam Metals | Dow Jones vs. ACG Metals Limited | Dow Jones vs. China Clean Energy | Dow Jones vs. Fast Retailing Co |
| ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. NMI Holdings | ATRYS HEALTH vs. Origin Agritech | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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