Correlation Between Atom Hoteles and Atrys Health
Can any of the company-specific risk be diversified away by investing in both Atom Hoteles 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 Atom Hoteles and Atrys Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atom Hoteles Socimi and Atrys Health SL, you can compare the effects of market volatilities on Atom Hoteles 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 Atom Hoteles with a short position of Atrys Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atom Hoteles and Atrys Health.
Diversification Opportunities for Atom Hoteles and Atrys Health
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atom and Atrys is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Atom Hoteles Socimi and Atrys Health SL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrys Health SL and Atom Hoteles 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 Atom Hoteles Socimi 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 SL has no effect on the direction of Atom Hoteles i.e., Atom Hoteles and Atrys Health go up and down completely randomly.
Pair Corralation between Atom Hoteles and Atrys Health
Assuming the 90 days trading horizon Atom Hoteles Socimi is expected to generate 4.34 times more return on investment than Atrys Health. However, Atom Hoteles is 4.34 times more volatile than Atrys Health SL. It trades about 0.05 of its potential returns per unit of risk. Atrys Health SL is currently generating about -0.06 per unit of risk. If you would invest 975.00 in Atom Hoteles Socimi on September 1, 2024 and sell it today you would earn a total of 415.00 from holding Atom Hoteles Socimi or generate 42.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atom Hoteles Socimi vs. Atrys Health SL
Performance |
| Timeline |
| Atom Hoteles Socimi |
| Atrys Health SL |
Atom Hoteles and Atrys Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atom Hoteles and Atrys Health
The main advantage of trading using opposite Atom Hoteles and Atrys Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atom Hoteles 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.| Atom Hoteles vs. Lyxor UCITS Ibex35 | Atom Hoteles vs. Metrovacesa SA | Atom Hoteles vs. Hispanotels Inversiones SOCIMI | Atom Hoteles vs. Mapfre |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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