Correlation Between BORR DRILLING and ATRYS HEALTH

Can any of the company-specific risk be diversified away by investing in both BORR DRILLING and ATRYS HEALTH 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 BORR DRILLING and ATRYS HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BORR DRILLING NEW and ATRYS HEALTH SA, you can compare the effects of market volatilities on BORR DRILLING and ATRYS HEALTH 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 BORR DRILLING with a short position of ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of BORR DRILLING and ATRYS HEALTH.

Diversification Opportunities for BORR DRILLING and ATRYS HEALTH

0.65

Correlation Coefficient

BORR DRILLING  ATRYS HEALTH

Poor diversification

The 3 months correlation between BORR and ATRYS is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding BORR DRILLING NEW and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA and BORR DRILLING 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 BORR DRILLING NEW are associated (or correlated) with ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of BORR DRILLING i.e., BORR DRILLING and ATRYS HEALTH go up and down completely randomly.

Pair Corralation between BORR DRILLING and ATRYS HEALTH

Assuming the 90 days horizon BORR DRILLING NEW is expected to under-perform the ATRYS HEALTH. In addition to that, BORR DRILLING is 1.39 times more volatile than ATRYS HEALTH SA. It trades about -0.08 of its total potential returns per unit of risk. ATRYS HEALTH SA is currently generating about -0.03 per unit of volatility. If you would invest  339.00  in ATRYS HEALTH SA on September 23, 2024 and sell it today you would lose (38.00) from holding ATRYS HEALTH SA or give up 11.21% of portfolio value over 90 days.

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

BORR DRILLING NEW  vs.  ATRYS HEALTH SA

BORR DRILLING NEW

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BORR DRILLING NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ATRYS HEALTH SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ATRYS HEALTH SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ATRYS HEALTH is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BORR DRILLING and ATRYS HEALTH

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

The idea behind BORR DRILLING NEW and ATRYS HEALTH 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.