Correlation Between Industria and Atrys Health

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

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

Diversification Opportunities for Industria and Atrys Health

-0.23

Correlation Coefficient

Industria  Atrys Health

Very good diversification

The 3 months correlation between Industria and Atrys is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Industria de Diseno 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 Industria 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 Industria de Diseno 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 Industria i.e., Industria and Atrys Health go up and down completely randomly.

Pair Corralation between Industria and Atrys Health

Assuming the 90 days trading horizon Industria de Diseno is expected to generate 0.65 times more return on investment than Atrys Health. However, Industria de Diseno is 1.53 times less risky than Atrys Health. It trades about 0.1 of its potential returns per unit of risk. Atrys Health SL is currently generating about -0.04 per unit of risk. If you would invest  2,748  in Industria de Diseno on December 3, 2024 and sell it today you would earn a total of  2,452  from holding Industria de Diseno or generate 89.23% return on investment over 90 days.

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

Industria de Diseno  vs.  Atrys Health SL

Industria de Diseno

Risk-Adjusted Performance

Very Weak

Over the last 90 days Industria de Diseno has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Industria 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

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atrys Health SL are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Atrys Health may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Industria and Atrys Health

The main advantage of trading using opposite Industria and Atrys Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industria 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 Industria de Diseno 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.