Correlation Between Solstad Offshore and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both Solstad Offshore 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 Solstad Offshore and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solstad Offshore ASA and ATRYS HEALTH SA, you can compare the effects of market volatilities on Solstad Offshore 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 Solstad Offshore with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solstad Offshore and ATRYS HEALTH.
Diversification Opportunities for Solstad Offshore and ATRYS HEALTH
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Solstad and ATRYS is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Solstad Offshore ASA 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 Solstad Offshore 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 Solstad Offshore ASA 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 Solstad Offshore i.e., Solstad Offshore and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between Solstad Offshore and ATRYS HEALTH
Assuming the 90 days trading horizon Solstad Offshore ASA is expected to generate 2.18 times more return on investment than ATRYS HEALTH. However, Solstad Offshore is 2.18 times more volatile than ATRYS HEALTH SA. It trades about 0.19 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.1 per unit of risk. If you would invest 270.00 in Solstad Offshore ASA on August 29, 2024 and sell it today you would earn a total of 95.00 from holding Solstad Offshore ASA or generate 35.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Solstad Offshore ASA vs. ATRYS HEALTH SA
Performance |
| Timeline |
| Solstad Offshore ASA |
| ATRYS HEALTH SA |
Solstad Offshore and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solstad Offshore and ATRYS HEALTH
The main advantage of trading using opposite Solstad Offshore and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solstad Offshore 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.| Solstad Offshore vs. ZIM Integrated Shipping | Solstad Offshore vs. Superior Plus Corp | Solstad Offshore vs. NMI Holdings | Solstad Offshore vs. SIVERS SEMICONDUCTORS AB |
| ATRYS HEALTH vs. Mercedes Benz Group AG | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. NMI Holdings | 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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