Correlation Between ATRYS HEALTH and US FOODS
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and US FOODS 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 US FOODS 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 US FOODS HOLDING, you can compare the effects of market volatilities on ATRYS HEALTH and US FOODS 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 US FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and US FOODS.
Diversification Opportunities for ATRYS HEALTH and US FOODS
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ATRYS and UFH is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and US FOODS HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US FOODS HOLDING 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 US FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US FOODS HOLDING has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and US FOODS go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and US FOODS
Assuming the 90 days horizon ATRYS HEALTH SA is expected to generate 4.22 times more return on investment than US FOODS. However, ATRYS HEALTH is 4.22 times more volatile than US FOODS HOLDING. It trades about 0.2 of its potential returns per unit of risk. US FOODS HOLDING is currently generating about 0.0 per unit of risk. If you would invest 288.00 in ATRYS HEALTH SA on October 13, 2024 and sell it today you would earn a total of 35.00 from holding ATRYS HEALTH SA or generate 12.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ATRYS HEALTH SA vs. US FOODS HOLDING
Performance |
Timeline |
ATRYS HEALTH SA |
US FOODS HOLDING |
ATRYS HEALTH and US FOODS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATRYS HEALTH and US FOODS
The main advantage of trading using opposite ATRYS HEALTH and US FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, US FOODS 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 US FOODS will offset losses from the drop in US FOODS's long position.ATRYS HEALTH vs. PREMIER FOODS | ATRYS HEALTH vs. Daito Trust Construction | ATRYS HEALTH vs. FARM 51 GROUP | ATRYS HEALTH vs. MTY Food Group |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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