Correlation Between Mercedes-Benz Group and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Mercedes-Benz Group 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 Mercedes-Benz Group and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercedes Benz Group AG and ATRYS HEALTH SA, you can compare the effects of market volatilities on Mercedes-Benz Group 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 Mercedes-Benz Group with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercedes-Benz Group and ATRYS HEALTH.
Diversification Opportunities for Mercedes-Benz Group and ATRYS HEALTH
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mercedes-Benz and ATRYS is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mercedes Benz Group 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 Mercedes-Benz Group 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 Mercedes Benz Group 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 Mercedes-Benz Group i.e., Mercedes-Benz Group and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Mercedes-Benz Group and ATRYS HEALTH
Assuming the 90 days horizon Mercedes Benz Group AG is expected to generate 0.47 times more return on investment than ATRYS HEALTH. However, Mercedes Benz Group AG is 2.12 times less risky than ATRYS HEALTH. It trades about 0.17 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about 0.01 per unit of risk. If you would invest 5,501 in Mercedes Benz Group AG on December 11, 2024 and sell it today you would earn a total of 595.00 from holding Mercedes Benz Group AG or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercedes Benz Group AG vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Mercedes Benz Group |
| ATRYS HEALTH SA |
Mercedes-Benz Group and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercedes-Benz Group and ATRYS HEALTH
The main advantage of trading using opposite Mercedes-Benz Group and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercedes-Benz Group 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.| Mercedes-Benz Group vs. The Yokohama Rubber | Mercedes-Benz Group vs. LAir Liquide SA | Mercedes-Benz Group vs. SOGECLAIR SA INH | Mercedes-Benz Group vs. APPLIED MATERIALS |
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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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