Correlation Between Magic Software and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Magic Software 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 Magic Software and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magic Software Enterprises and ATRYS HEALTH SA, you can compare the effects of market volatilities on Magic Software 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 Magic Software with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magic Software and ATRYS HEALTH.
Diversification Opportunities for Magic Software and ATRYS HEALTH
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magic and ATRYS is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Magic Software Enterprises 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 Magic Software 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 Magic Software Enterprises 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 Magic Software i.e., Magic Software and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Magic Software and ATRYS HEALTH
Assuming the 90 days horizon Magic Software Enterprises is expected to generate 1.17 times more return on investment than ATRYS HEALTH. However, Magic Software is 1.17 times more volatile than ATRYS HEALTH SA. It trades about 0.01 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.03 per unit of risk. If you would invest 1,356 in Magic Software Enterprises on November 5, 2024 and sell it today you would lose (156.00) from holding Magic Software Enterprises or give up 11.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magic Software Enterprises vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Magic Software Enter |
| ATRYS HEALTH SA |
Magic Software and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magic Software and ATRYS HEALTH
The main advantage of trading using opposite Magic Software and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magic Software 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.| Magic Software vs. CREO MEDICAL GRP | Magic Software vs. CompuGroup Medical SE | Magic Software vs. Hua Hong Semiconductor | Magic Software vs. Inspire Medical Systems |
| ATRYS HEALTH vs. Geely Automobile Holdings | ATRYS HEALTH vs. WillScot Mobile Mini | ATRYS HEALTH vs. Cairo Communication SpA | ATRYS HEALTH vs. ZhongAn Online P |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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