Correlation Between ATRYS HEALTH and Insperity

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

Diversification Opportunities for ATRYS HEALTH and Insperity

-0.01

Correlation Coefficient

ATRYS HEALTH  Insperity

Good diversification

The 3 months correlation between ATRYS and Insperity is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and Insperity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insperity 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 Insperity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insperity has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and Insperity go up and down completely randomly.

Pair Corralation between ATRYS HEALTH and Insperity

Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the Insperity. But the stock apears to be less risky and, when comparing its historical volatility, ATRYS HEALTH SA is 1.4 times less risky than Insperity. The stock trades about -0.07 of its potential returns per unit of risk. The Insperity is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  6,750  in Insperity on December 10, 2024 and sell it today you would earn a total of  1,100  from holding Insperity or generate 16.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ATRYS HEALTH SA  vs.  Insperity

ATRYS HEALTH SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ATRYS HEALTH SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ATRYS HEALTH reported solid returns over the last few months and may actually be approaching a breakup point.

Insperity

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Insperity are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Insperity is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ATRYS HEALTH and Insperity

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

The idea behind ATRYS HEALTH SA and Insperity 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.