Correlation Between ATRYS HEALTH and KUAISHOU TECHNOLOGY

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

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

Diversification Opportunities for ATRYS HEALTH and KUAISHOU TECHNOLOGY

0.28

Correlation Coefficient

ATRYS HEALTH  KUAISHOU TECHNOLOGY

Modest diversification

The 3 months correlation between ATRYS and KUAISHOU is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and KUAISHOU TECHNOLOGY CLB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KUAISHOU TECHNOLOGY CLB and ATRYS HEALTH 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 ATRYS HEALTH SA are associated (or correlated) with KUAISHOU TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KUAISHOU TECHNOLOGY CLB has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and KUAISHOU TECHNOLOGY go up and down completely randomly.

Pair Corralation between ATRYS HEALTH and KUAISHOU TECHNOLOGY

Assuming the 90 days horizon ATRYS HEALTH SA is expected to generate 0.86 times more return on investment than KUAISHOU TECHNOLOGY. However, ATRYS HEALTH SA is 1.17 times less risky than KUAISHOU TECHNOLOGY. It trades about 0.04 of its potential returns per unit of risk. KUAISHOU TECHNOLOGY CLB is currently generating about -0.03 per unit of risk. If you would invest  267.00  in ATRYS HEALTH SA on September 24, 2024 and sell it today you would earn a total of  34.00  from holding ATRYS HEALTH SA or generate 12.73% return on investment over 90 days.

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

ATRYS HEALTH SA  vs.  KUAISHOU TECHNOLOGY CLB

ATRYS HEALTH SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ATRYS HEALTH SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ATRYS HEALTH is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

KUAISHOU TECHNOLOGY CLB

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KUAISHOU TECHNOLOGY CLB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, KUAISHOU TECHNOLOGY may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with ATRYS HEALTH and KUAISHOU TECHNOLOGY

The main advantage of trading using opposite ATRYS HEALTH and KUAISHOU TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, KUAISHOU TECHNOLOGY 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 KUAISHOU TECHNOLOGY will offset losses from the drop in KUAISHOU TECHNOLOGY's long position.

The idea behind ATRYS HEALTH SA and KUAISHOU TECHNOLOGY CLB 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.