Correlation Between ATI Physical and Uphealth

Can any of the company-specific risk be diversified away by investing in both ATI Physical and Uphealth 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 Uphealth 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 Uphealth, you can compare the effects of market volatilities on ATI Physical and Uphealth 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 Uphealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATI Physical and Uphealth.

Diversification Opportunities for ATI Physical and Uphealth

0.0

Correlation Coefficient

ATI Physical  Uphealth

Pay attention - limited upside

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

Pair Corralation between ATI Physical and Uphealth

If you would invest (100.00) in Uphealth on December 27, 2024 and sell it today you would earn a total of  100.00  from holding Uphealth or generate -100.0% return on investment over 90 days.

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

ATI Physical Therapy  vs.  Uphealth

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 current stock price agitation, may contribute to short-term losses for the retail investors.

Uphealth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Uphealth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Uphealth is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with ATI Physical and Uphealth

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

The idea behind ATI Physical Therapy and Uphealth 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.