Correlation Between Global Dominion and Atrys Health

Can any of the company-specific risk be diversified away by investing in both Global Dominion 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 Global Dominion and Atrys Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Dominion Access and Atrys Health SL, you can compare the effects of market volatilities on Global Dominion 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 Global Dominion with a short position of Atrys Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Dominion and Atrys Health.

Diversification Opportunities for Global Dominion and Atrys Health

0.42

Correlation Coefficient

Global Dominion  Atrys Health

Very weak diversification

The 3 months correlation between Global and Atrys is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Global Dominion Access and Atrys Health SL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrys Health SL and Global Dominion 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 Global Dominion Access 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 SL has no effect on the direction of Global Dominion i.e., Global Dominion and Atrys Health go up and down completely randomly.

Pair Corralation between Global Dominion and Atrys Health

Assuming the 90 days trading horizon Global Dominion Access is expected to generate 0.77 times more return on investment than Atrys Health. However, Global Dominion Access is 1.3 times less risky than Atrys Health. It trades about 0.08 of its potential returns per unit of risk. Atrys Health SL is currently generating about -0.23 per unit of risk. If you would invest  273.00  in Global Dominion Access on December 30, 2024 and sell it today you would earn a total of  8.00  from holding Global Dominion Access or generate 2.93% return on investment over 90 days.

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

Global Dominion Access  vs.  Atrys Health SL

Global Dominion Access

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Global Dominion Access are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, Global Dominion is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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.

Pair Trading with Global Dominion and Atrys Health

The main advantage of trading using opposite Global Dominion and Atrys Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Dominion 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 Global Dominion Access and Atrys Health SL 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.