Correlation Between Agile Content and Atrys Health

Can any of the company-specific risk be diversified away by investing in both Agile Content and Atrys Health 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 Agile Content and Atrys Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agile Content SA and Atrys Health SL, you can compare the effects of market volatilities on Agile Content and Atrys Health 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 Agile Content with a short position of Atrys Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Content and Atrys Health.

Diversification Opportunities for Agile Content and Atrys Health

-0.13

Correlation Coefficient

Agile Content  Atrys Health

Good diversification

The 3 months correlation between Agile and Atrys is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Agile Content SA and Atrys Health SL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrys Health SL and Agile Content 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 Agile Content SA are associated (or correlated) with Atrys Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrys Health SL has no effect on the direction of Agile Content i.e., Agile Content and Atrys Health go up and down completely randomly.

Pair Corralation between Agile Content and Atrys Health

Assuming the 90 days trading horizon Agile Content SA is expected to generate 1.45 times more return on investment than Atrys Health. However, Agile Content is 1.45 times more volatile than Atrys Health SL. It trades about -0.01 of its potential returns per unit of risk. Atrys Health SL is currently generating about -0.11 per unit of risk. If you would invest  280.00  in Agile Content SA on December 30, 2024 and sell it today you would lose (10.00) from holding Agile Content SA or give up 3.57% of portfolio value over 90 days.

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

Agile Content SA  vs.  Atrys Health SL

Agile Content SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agile Content SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Agile Content is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Atrys Health SL

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atrys Health SL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Agile Content and Atrys Health

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

The idea behind Agile Content SA and Atrys Health SL 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.