Correlation Between Universal Entertainment and ATRYS HEALTH

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

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

Diversification Opportunities for Universal Entertainment and ATRYS HEALTH

0.49

Correlation Coefficient

Universal Entertainment  ATRYS HEALTH

Very weak diversification

The 3 months correlation between Universal and ATRYS is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Universal Entertainment 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 Universal Entertainment 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 Universal Entertainment 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 Universal Entertainment i.e., Universal Entertainment and ATRYS HEALTH go up and down completely randomly.

Pair Corralation between Universal Entertainment and ATRYS HEALTH

Assuming the 90 days trading horizon Universal Entertainment is expected to under-perform the ATRYS HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Universal Entertainment is 1.45 times less risky than ATRYS HEALTH. The stock trades about -0.24 of its potential returns per unit of risk. The ATRYS HEALTH SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  296.00  in ATRYS HEALTH SA on September 29, 2024 and sell it today you would earn a total of  27.00  from holding ATRYS HEALTH SA or generate 9.12% return on investment over 90 days.

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

Universal Entertainment  vs.  ATRYS HEALTH SA

Universal Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Universal Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ATRYS HEALTH SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATRYS HEALTH SA has generated negative risk-adjusted returns adding no value to investors with long positions. 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 Universal Entertainment and ATRYS HEALTH

The main advantage of trading using opposite Universal Entertainment and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Entertainment 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 Universal Entertainment 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.