Correlation Between Laboratory and ATI Physical

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

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

Diversification Opportunities for Laboratory and ATI Physical

0.0

Correlation Coefficient

Laboratory  ATI Physical

Pay attention - limited upside

The 3 months correlation between Laboratory and ATI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Laboratory of 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 Laboratory 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 Laboratory of 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 Laboratory i.e., Laboratory and ATI Physical go up and down completely randomly.

Pair Corralation between Laboratory and ATI Physical

If you would invest  22,820  in Laboratory of on December 28, 2024 and sell it today you would earn a total of  182.00  from holding Laboratory of or generate 0.8% return on investment over 90 days.

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

Laboratory of  vs.  ATI Physical Therapy

Laboratory

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Laboratory of are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Laboratory is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

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 Laboratory and ATI Physical

The main advantage of trading using opposite Laboratory and ATI Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laboratory 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 Laboratory of 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.

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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.