Correlation Between Atrys Health and Agile Content

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

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

Diversification Opportunities for Atrys Health and Agile Content

-0.07

Correlation Coefficient

Atrys Health  Agile Content

Good diversification

The 3 months correlation between Atrys and Agile is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Atrys Health SL and Agile Content SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agile Content SA and Atrys Health 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 Atrys Health SL are associated (or correlated) with Agile Content. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agile Content SA has no effect on the direction of Atrys Health i.e., Atrys Health and Agile Content go up and down completely randomly.

Pair Corralation between Atrys Health and Agile Content

Assuming the 90 days trading horizon Atrys Health SL is expected to under-perform the Agile Content. But the stock apears to be less risky and, when comparing its historical volatility, Atrys Health SL is 1.44 times less risky than Agile Content. The stock trades about -0.11 of its potential returns per unit of risk. The Agile Content SA is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  280.00  in Agile Content SA on December 29, 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	98.46%
Values	Daily Returns

Atrys Health SL  vs.  Agile Content SA

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.

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.

Pair Trading with Atrys Health and Agile Content

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

The idea behind Atrys Health SL and Agile Content SA 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..