Correlation Between NORWEGIAN AIR and ATRYS HEALTH

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

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

Diversification Opportunities for NORWEGIAN AIR and ATRYS HEALTH

0.4

Correlation Coefficient

NORWEGIAN AIR  ATRYS HEALTH

Very weak diversification

The 3 months correlation between NORWEGIAN and ATRYS is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding NORWEGIAN AIR SHUT 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 NORWEGIAN AIR 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 NORWEGIAN AIR SHUT 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 NORWEGIAN AIR i.e., NORWEGIAN AIR and ATRYS HEALTH go up and down completely randomly.

Pair Corralation between NORWEGIAN AIR and ATRYS HEALTH

Assuming the 90 days trading horizon NORWEGIAN AIR SHUT is expected to under-perform the ATRYS HEALTH. In addition to that, NORWEGIAN AIR is 1.14 times more volatile than ATRYS HEALTH SA. It trades about -0.03 of its total potential returns per unit of risk. ATRYS HEALTH SA is currently generating about 0.04 per unit of volatility. If you would invest  315.00  in ATRYS HEALTH SA on October 9, 2024 and sell it today you would earn a total of  12.00  from holding ATRYS HEALTH SA or generate 3.81% return on investment over 90 days.

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

NORWEGIAN AIR SHUT  vs.  ATRYS HEALTH SA

NORWEGIAN AIR SHUT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NORWEGIAN AIR SHUT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, NORWEGIAN AIR is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with NORWEGIAN AIR and ATRYS HEALTH

The main advantage of trading using opposite NORWEGIAN AIR and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORWEGIAN AIR 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 NORWEGIAN AIR SHUT 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.