Correlation Between Atrys Health and Grupo Ecoener

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

Diversification Opportunities for Atrys Health and Grupo Ecoener

0.72

Correlation Coefficient

Atrys Health  Grupo Ecoener

Poor diversification

The 3 months correlation between Atrys and Grupo is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Atrys Health SL and Grupo Ecoener SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Ecoener 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 Grupo Ecoener. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Ecoener SA has no effect on the direction of Atrys Health i.e., Atrys Health and Grupo Ecoener go up and down completely randomly.

Pair Corralation between Atrys Health and Grupo Ecoener

Assuming the 90 days trading horizon Atrys Health SL is expected to under-perform the Grupo Ecoener. In addition to that, Atrys Health is 1.23 times more volatile than Grupo Ecoener SA. It trades about -0.11 of its total potential returns per unit of risk. Grupo Ecoener SA is currently generating about 0.03 per unit of volatility. If you would invest  454.00  in Grupo Ecoener SA on December 27, 2024 and sell it today you would earn a total of  8.00  from holding Grupo Ecoener SA or generate 1.76% return on investment over 90 days.

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

Atrys Health SL  vs.  Grupo Ecoener 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.

Grupo Ecoener SA

Risk-Adjusted Performance

Weak

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

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

The idea behind Atrys Health SL and Grupo Ecoener 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.