Correlation Between Straumann Holding and ATRION
Can any of the company-specific risk be diversified away by investing in both Straumann Holding and ATRION 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 Straumann Holding and ATRION into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straumann Holding AG and ATRION, you can compare the effects of market volatilities on Straumann Holding and ATRION 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 Straumann Holding with a short position of ATRION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straumann Holding and ATRION.
Diversification Opportunities for Straumann Holding and ATRION
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Straumann and ATRION is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Straumann Holding AG and ATRION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRION and Straumann Holding 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 Straumann Holding AG are associated (or correlated) with ATRION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRION has no effect on the direction of Straumann Holding i.e., Straumann Holding and ATRION go up and down completely randomly.
Pair Corralation between Straumann Holding and ATRION
If you would invest (100.00) in ATRION on September 2, 2024 and sell it today you would earn a total of 100.00 from holding ATRION or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Straumann Holding AG vs. ATRION
Performance |
| Timeline |
| Straumann Holding |
| ATRION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Straumann Holding and ATRION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straumann Holding and ATRION
The main advantage of trading using opposite Straumann Holding and ATRION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straumann Holding position performs unexpectedly, ATRION 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 ATRION will offset losses from the drop in ATRION's long position.| Straumann Holding vs. Sysmex Corp | Straumann Holding vs. Coloplast A | Straumann Holding vs. Hoya Corp | Straumann Holding vs. Utah Medical Products |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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