Correlation Between Lion One and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and ATRYS HEALTH SA, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and ATRYS HEALTH.
Diversification Opportunities for Lion One and ATRYS HEALTH
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lion and ATRYS is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals 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 Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Lion One and ATRYS HEALTH
Assuming the 90 days horizon Lion One Metals is expected to under-perform the ATRYS HEALTH. In addition to that, Lion One is 1.91 times more volatile than ATRYS HEALTH SA. It trades about -0.03 of its total potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.04 per unit of volatility. If you would invest 556.00 in ATRYS HEALTH SA on September 12, 2024 and sell it today you would lose (269.00) from holding ATRYS HEALTH SA or give up 48.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Lion One Metals |
| ATRYS HEALTH SA |
Lion One and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and ATRYS HEALTH
The main advantage of trading using opposite Lion One and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Franco Nevada | Lion One vs. Superior Plus Corp | Lion One vs. SIVERS SEMICONDUCTORS AB | Lion One vs. Norsk Hydro ASA |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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