Correlation Between Atrys Health and Elaia Investment

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

Diversification Opportunities for Atrys Health and Elaia Investment

0.23

Correlation Coefficient

Atrys Health  Elaia Investment

Modest diversification

The 3 months correlation between Atrys and Elaia is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Atrys Health SL and Elaia Investment Spain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elaia Investment Spain 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 Elaia Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elaia Investment Spain has no effect on the direction of Atrys Health i.e., Atrys Health and Elaia Investment go up and down completely randomly.

Pair Corralation between Atrys Health and Elaia Investment

Assuming the 90 days trading horizon Atrys Health SL is expected to generate 0.6 times more return on investment than Elaia Investment. However, Atrys Health SL is 1.68 times less risky than Elaia Investment. It trades about -0.03 of its potential returns per unit of risk. Elaia Investment Spain is currently generating about -0.12 per unit of risk. If you would invest  319.00  in Atrys Health SL on September 12, 2024 and sell it today you would lose (13.00) from holding Atrys Health SL or give up 4.08% of portfolio value over 90 days.

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

Atrys Health SL  vs.  Elaia Investment Spain

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.

Elaia Investment Spain

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elaia Investment Spain 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 January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Atrys Health and Elaia Investment

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

The idea behind Atrys Health SL and Elaia Investment Spain 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.