Correlation Between ATRION and Femasys

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

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

Diversification Opportunities for ATRION and Femasys

0.0

Correlation Coefficient

ATRION  Femasys

Pay attention - limited upside

The 3 months correlation between ATRION and Femasys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATRION and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys and ATRION 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 ATRION 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 ATRION i.e., ATRION and Femasys go up and down completely randomly.

Pair Corralation between ATRION and Femasys

If you would invest  110.00  in Femasys on December 29, 2024 and sell it today you would earn a total of  24.00  from holding Femasys or generate 21.82% return on investment over 90 days.

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

ATRION  vs.  Femasys

ATRION

Risk-Adjusted Performance

Very Weak

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

Femasys

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 7 (%) 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 ATRION and Femasys

The main advantage of trading using opposite ATRION and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRION 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 ATRION 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.