Correlation Between ATI Physical and Femasys

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

By analyzing existing cross correlation between ATI Physical Therapy and Femasys, you can compare the effects of market volatilities on ATI Physical and Femasys 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 ATI Physical with a short position of Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATI Physical and Femasys.

Diversification Opportunities for ATI Physical and Femasys

0.0

Correlation Coefficient

ATI Physical  Femasys

Pay attention - limited upside

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

Pair Corralation between ATI Physical and Femasys

If you would invest  115.00  in Femasys on December 25, 2024 and sell it today you would earn a total of  41.00  from holding Femasys or generate 35.65% return on investment over 90 days.

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

ATI Physical Therapy  vs.  Femasys

ATI Physical Therapy

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATI Physical Therapy has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, ATI Physical is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Femasys

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Femasys showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ATI Physical and Femasys

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

The idea behind ATI Physical Therapy and Femasys 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.