Correlation Between EHEALTH and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both EHEALTH 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 EHEALTH and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EHEALTH and ATRYS HEALTH SA, you can compare the effects of market volatilities on EHEALTH 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 EHEALTH with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of EHEALTH and ATRYS HEALTH.
Diversification Opportunities for EHEALTH and ATRYS HEALTH
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EHEALTH and ATRYS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding EHEALTH 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 EHEALTH 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 EHEALTH 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 EHEALTH i.e., EHEALTH and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between EHEALTH and ATRYS HEALTH
Assuming the 90 days trading horizon EHEALTH is expected to generate 1.87 times more return on investment than ATRYS HEALTH. However, EHEALTH is 1.87 times more volatile than ATRYS HEALTH SA. It trades about 0.02 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.07 per unit of risk. If you would invest 486.00 in EHEALTH on September 3, 2024 and sell it today you would earn a total of 9.00 from holding EHEALTH or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EHEALTH vs. ATRYS HEALTH SA
Performance |
| Timeline |
| EHEALTH |
| ATRYS HEALTH SA |
EHEALTH and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EHEALTH and ATRYS HEALTH
The main advantage of trading using opposite EHEALTH and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EHEALTH 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 EHEALTH 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. Harmony Gold Mining | ATRYS HEALTH vs. BRIT AMER TOBACCO | ATRYS HEALTH vs. Mobilezone Holding AG | ATRYS HEALTH vs. KENEDIX OFFICE INV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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