Correlation Between Aryzta AG and Thorne HealthTech

Can any of the company-specific risk be diversified away by investing in both Aryzta AG and Thorne HealthTech 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 Aryzta AG and Thorne HealthTech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aryzta AG PK and Thorne HealthTech, you can compare the effects of market volatilities on Aryzta AG and Thorne HealthTech 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 Aryzta AG with a short position of Thorne HealthTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aryzta AG and Thorne HealthTech.

Diversification Opportunities for Aryzta AG and Thorne HealthTech

0.0

Correlation Coefficient

Aryzta AG  Thorne HealthTech

Pay attention - limited upside

The 3 months correlation between Aryzta and Thorne is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aryzta AG PK and Thorne HealthTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thorne HealthTech and Aryzta AG 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 Aryzta AG PK are associated (or correlated) with Thorne HealthTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thorne HealthTech has no effect on the direction of Aryzta AG i.e., Aryzta AG and Thorne HealthTech go up and down completely randomly.

Pair Corralation between Aryzta AG and Thorne HealthTech

If you would invest  86.00  in Aryzta AG PK on December 29, 2024 and sell it today you would earn a total of  24.00  from holding Aryzta AG PK or generate 27.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Aryzta AG PK  vs.  Thorne HealthTech

Aryzta AG PK

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aryzta AG PK are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Aryzta AG showed solid returns over the last few months and may actually be approaching a breakup point.

Thorne HealthTech

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thorne HealthTech has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Thorne HealthTech is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Aryzta AG and Thorne HealthTech

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

The idea behind Aryzta AG PK and Thorne HealthTech 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.