Correlation Between Cogent Communications and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Cogent Communications 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 Cogent Communications and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Communications Holdings and ATRYS HEALTH SA, you can compare the effects of market volatilities on Cogent Communications 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 Cogent Communications with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and ATRYS HEALTH.
Diversification Opportunities for Cogent Communications and ATRYS HEALTH
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cogent and ATRYS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Holdings 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 Cogent Communications 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 Cogent Communications Holdings 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 Cogent Communications i.e., Cogent Communications and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Cogent Communications and ATRYS HEALTH
Assuming the 90 days trading horizon Cogent Communications Holdings is expected to generate 0.92 times more return on investment than ATRYS HEALTH. However, Cogent Communications Holdings is 1.08 times less risky than ATRYS HEALTH. It trades about 0.05 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 4,720 in Cogent Communications Holdings on September 13, 2024 and sell it today you would earn a total of 2,480 from holding Cogent Communications Holdings or generate 52.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogent Communications Holdings vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Cogent Communications |
| ATRYS HEALTH SA |
Cogent Communications and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and ATRYS HEALTH
The main advantage of trading using opposite Cogent Communications and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications 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.| Cogent Communications vs. Superior Plus Corp | Cogent Communications vs. SIVERS SEMICONDUCTORS AB | Cogent Communications vs. Norsk Hydro ASA | Cogent Communications vs. Reliance Steel Aluminum |
| 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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