Correlation Between Raytech Holding and Atlas Air

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

By analyzing existing cross correlation between Raytech Holding Limited and Atlas Air Worldwide, you can compare the effects of market volatilities on Raytech Holding and Atlas Air 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 Raytech Holding with a short position of Atlas Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raytech Holding and Atlas Air.

Diversification Opportunities for Raytech Holding and Atlas Air

0.0

Correlation Coefficient

Raytech Holding  Atlas Air

Pay attention - limited upside

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

Pair Corralation between Raytech Holding and Atlas Air

If you would invest (100.00) in Atlas Air Worldwide on December 4, 2024 and sell it today you would earn a total of  100.00  from holding Atlas Air Worldwide or generate -100.0% return on investment over 90 days.

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

Raytech Holding Limited  vs.  Atlas Air Worldwide

Raytech Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Raytech Holding Limited 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 basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Atlas Air Worldwide

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atlas Air Worldwide has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Atlas Air is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Raytech Holding and Atlas Air

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

The idea behind Raytech Holding Limited and Atlas Air Worldwide 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.