Correlation Between ATRYS HEALTH and Aluminumof China

Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and Aluminumof China 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 Aluminumof China 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 Aluminum of, you can compare the effects of market volatilities on ATRYS HEALTH and Aluminumof China 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 Aluminumof China. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and Aluminumof China.

Diversification Opportunities for ATRYS HEALTH and Aluminumof China

0.35

Correlation Coefficient

ATRYS HEALTH  Aluminumof China

Weak diversification

The 3 months correlation between ATRYS and Aluminumof is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Aluminum of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminumof China 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 Aluminumof China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminumof China has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Aluminumof China go up and down completely randomly.

Pair Corralation between ATRYS HEALTH and Aluminumof China

Assuming the 90 days horizon ATRYS HEALTH SA is expected to generate 1.65 times more return on investment than Aluminumof China. However, ATRYS HEALTH is 1.65 times more volatile than Aluminum of. It trades about 0.25 of its potential returns per unit of risk. Aluminum of is currently generating about -0.13 per unit of risk. If you would invest  289.00  in ATRYS HEALTH SA on October 6, 2024 and sell it today you would earn a total of  44.00  from holding ATRYS HEALTH SA or generate 15.22% 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.  Aluminum of

ATRYS HEALTH SA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in ATRYS HEALTH SA are ranked lower than 3 (%) 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.

Aluminumof China

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aluminum of 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 ATRYS HEALTH and Aluminumof China

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

The idea behind ATRYS HEALTH SA and Aluminum of 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.