Correlation Between Atrys Health and Catenon SA

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

Diversification Opportunities for Atrys Health and Catenon SA

-0.38

Correlation Coefficient

Atrys Health  Catenon SA

Very good diversification

The 3 months correlation between Atrys and Catenon is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Atrys Health SL and Catenon SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catenon 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 Catenon SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catenon SA has no effect on the direction of Atrys Health i.e., Atrys Health and Catenon SA go up and down completely randomly.

Pair Corralation between Atrys Health and Catenon SA

Assuming the 90 days trading horizon Atrys Health SL is expected to under-perform the Catenon SA. But the stock apears to be less risky and, when comparing its historical volatility, Atrys Health SL is 1.65 times less risky than Catenon SA. The stock trades about -0.05 of its potential returns per unit of risk. The Catenon SA is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  145.00  in Catenon SA on October 10, 2024 and sell it today you would lose (75.00) from holding Catenon SA or give up 51.72% of portfolio value over 90 days.

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

Atrys Health SL  vs.  Catenon 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.

Catenon SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Catenon SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Catenon SA 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 Catenon SA

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

The idea behind Atrys Health SL and Catenon 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.