Correlation Between Femasys and ATI Physical

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

By analyzing existing cross correlation between Femasys and ATI Physical Therapy, you can compare the effects of market volatilities on Femasys and ATI Physical 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 Femasys with a short position of ATI Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and ATI Physical.

Diversification Opportunities for Femasys and ATI Physical

0.0

Correlation Coefficient

Femasys  ATI Physical

Pay attention - limited upside

The 3 months correlation between Femasys and ATI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and ATI Physical Therapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATI Physical Therapy and Femasys 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 Femasys are associated (or correlated) with ATI Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATI Physical Therapy has no effect on the direction of Femasys i.e., Femasys and ATI Physical go up and down completely randomly.

Pair Corralation between Femasys and ATI Physical

If you would invest  113.00  in Femasys on December 27, 2024 and sell it today you would earn a total of  21.00  from holding Femasys or generate 18.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Femasys  vs.  ATI Physical Therapy

Femasys

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak primary indicators, Femasys showed solid returns over the last few months and may actually be approaching a breakup point.

ATI Physical Therapy

Risk-Adjusted Performance

Very Weak

Over the last 90 days ATI Physical Therapy has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward indicators, ATI Physical is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Femasys and ATI Physical

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

The idea behind Femasys and ATI Physical Therapy 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.