Correlation Between Atrys Health and Altia Consultores

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

Diversification Opportunities for Atrys Health and Altia Consultores

0.5

Correlation Coefficient

Atrys Health  Altia Consultores

Very weak diversification

The 3 months correlation between Atrys and Altia is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Atrys Health SL and Altia Consultores SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altia Consultores 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 Altia Consultores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altia Consultores has no effect on the direction of Atrys Health i.e., Atrys Health and Altia Consultores go up and down completely randomly.

Pair Corralation between Atrys Health and Altia Consultores

Assuming the 90 days trading horizon Atrys Health SL is expected to under-perform the Altia Consultores. But the stock apears to be less risky and, when comparing its historical volatility, Atrys Health SL is 1.06 times less risky than Altia Consultores. The stock trades about -0.06 of its potential returns per unit of risk. The Altia Consultores SA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  462.00  in Altia Consultores SA on September 5, 2024 and sell it today you would lose (4.00) from holding Altia Consultores SA or give up 0.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Atrys Health SL  vs.  Altia Consultores SA

Atrys Health SL

Risk-Adjusted Performance

0 of 100

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 rather sound fundamental indicators, Atrys Health is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Altia Consultores

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Altia Consultores SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Altia Consultores 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 Altia Consultores

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

The idea behind Atrys Health SL and Altia Consultores 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.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.