Correlation Between LEWAG HOLDING and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both LEWAG HOLDING 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 LEWAG HOLDING and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LEWAG HOLDING AG and ATRYS HEALTH SA, you can compare the effects of market volatilities on LEWAG HOLDING 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 LEWAG HOLDING with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of LEWAG HOLDING and ATRYS HEALTH.
Diversification Opportunities for LEWAG HOLDING and ATRYS HEALTH
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LEWAG and ATRYS is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding LEWAG HOLDING AG 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 LEWAG HOLDING 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 LEWAG HOLDING AG 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 LEWAG HOLDING i.e., LEWAG HOLDING and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between LEWAG HOLDING and ATRYS HEALTH
Assuming the 90 days trading horizon LEWAG HOLDING AG is expected to generate 0.67 times more return on investment than ATRYS HEALTH. However, LEWAG HOLDING AG is 1.49 times less risky than ATRYS HEALTH. It trades about -0.02 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.05 per unit of risk. If you would invest 1,349 in LEWAG HOLDING AG on September 12, 2024 and sell it today you would lose (199.00) from holding LEWAG HOLDING AG or give up 14.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
LEWAG HOLDING AG vs. ATRYS HEALTH SA
Performance |
| Timeline |
| LEWAG HOLDING AG |
| ATRYS HEALTH SA |
LEWAG HOLDING and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LEWAG HOLDING and ATRYS HEALTH
The main advantage of trading using opposite LEWAG HOLDING and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LEWAG HOLDING 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.| LEWAG HOLDING vs. The Hanover Insurance | LEWAG HOLDING vs. Jacquet Metal Service | LEWAG HOLDING vs. HANOVER INSURANCE | LEWAG HOLDING vs. SBI Insurance Group |
| ATRYS HEALTH vs. Moderna | ATRYS HEALTH vs. BioNTech SE | ATRYS HEALTH vs. Superior Plus Corp | 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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