Correlation Between ATRYS HEALTH and EAGLE MATERIALS
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and EAGLE MATERIALS 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 EAGLE MATERIALS 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 EAGLE MATERIALS, you can compare the effects of market volatilities on ATRYS HEALTH and EAGLE MATERIALS 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 EAGLE MATERIALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and EAGLE MATERIALS.
Diversification Opportunities for ATRYS HEALTH and EAGLE MATERIALS
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and EAGLE is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and EAGLE MATERIALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAGLE MATERIALS 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 EAGLE MATERIALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAGLE MATERIALS has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and EAGLE MATERIALS go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and EAGLE MATERIALS
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the EAGLE MATERIALS. In addition to that, ATRYS HEALTH is 1.3 times more volatile than EAGLE MATERIALS. It trades about -0.04 of its total potential returns per unit of risk. EAGLE MATERIALS is currently generating about 0.07 per unit of volatility. If you would invest 12,959 in EAGLE MATERIALS on September 26, 2024 and sell it today you would earn a total of 11,041 from holding EAGLE MATERIALS or generate 85.2% 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. EAGLE MATERIALS
Performance |
Timeline |
ATRYS HEALTH SA |
EAGLE MATERIALS |
ATRYS HEALTH and EAGLE MATERIALS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATRYS HEALTH and EAGLE MATERIALS
The main advantage of trading using opposite ATRYS HEALTH and EAGLE MATERIALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, EAGLE MATERIALS 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 EAGLE MATERIALS will offset losses from the drop in EAGLE MATERIALS's long position.ATRYS HEALTH vs. Novo Nordisk AS | ATRYS HEALTH vs. Mercedes Benz Group AG | ATRYS HEALTH vs. Vertex Pharmaceuticals Incorporated | ATRYS HEALTH vs. Moderna |
EAGLE MATERIALS vs. ATRYS HEALTH SA | EAGLE MATERIALS vs. EPSILON HEALTHCARE LTD | EAGLE MATERIALS vs. STRAYER EDUCATION | EAGLE MATERIALS vs. DeVry Education Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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