Correlation Between FARM 51 and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both FARM 51 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 FARM 51 and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FARM 51 GROUP and ATRYS HEALTH SA, you can compare the effects of market volatilities on FARM 51 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 FARM 51 with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of FARM 51 and ATRYS HEALTH.
Diversification Opportunities for FARM 51 and ATRYS HEALTH
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FARM and ATRYS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding FARM 51 GROUP 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 FARM 51 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 FARM 51 GROUP 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 FARM 51 i.e., FARM 51 and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between FARM 51 and ATRYS HEALTH
Assuming the 90 days horizon FARM 51 GROUP is expected to under-perform the ATRYS HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, FARM 51 GROUP is 1.52 times less risky than ATRYS HEALTH. The stock trades about -0.21 of its potential returns per unit of risk. The ATRYS HEALTH SA is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 288.00 in ATRYS HEALTH SA on October 13, 2024 and sell it today you would earn a total of 35.00 from holding ATRYS HEALTH SA or generate 12.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FARM 51 GROUP vs. ATRYS HEALTH SA
Performance |
| Timeline |
| FARM 51 GROUP |
| ATRYS HEALTH SA |
FARM 51 and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FARM 51 and ATRYS HEALTH
The main advantage of trading using opposite FARM 51 and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FARM 51 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 FARM 51 GROUP 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. PREMIER FOODS | ATRYS HEALTH vs. Daito Trust Construction | ATRYS HEALTH vs. FARM 51 GROUP | ATRYS HEALTH vs. MTY Food 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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