Correlation Between Moderna and ATRYS HEALTH

Can any of the company-specific risk be diversified away by investing in both Moderna 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 Moderna and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Moderna and ATRYS HEALTH SA, you can compare the effects of market volatilities on Moderna 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 Moderna with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderna and ATRYS HEALTH.

Diversification Opportunities for Moderna and ATRYS HEALTH

0.3

Correlation Coefficient

Moderna  ATRYS HEALTH

Weak diversification

The 3 months correlation between Moderna and ATRYS is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Moderna 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 Moderna 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 Moderna 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 Moderna i.e., Moderna and ATRYS HEALTH go up and down completely randomly.

Pair Corralation between Moderna and ATRYS HEALTH

Assuming the 90 days horizon Moderna is expected to under-perform the ATRYS HEALTH. In addition to that, Moderna is 1.79 times more volatile than ATRYS HEALTH SA. It trades about -0.06 of its total potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.04 per unit of volatility. If you would invest  327.00  in ATRYS HEALTH SA on December 29, 2024 and sell it today you would lose (34.00) from holding ATRYS HEALTH SA or give up 10.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Moderna  vs.  ATRYS HEALTH SA

Moderna

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moderna has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ATRYS HEALTH SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATRYS HEALTH SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Moderna and ATRYS HEALTH

The main advantage of trading using opposite Moderna and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderna 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.

The idea behind Moderna and ATRYS HEALTH SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.