Correlation Between Ryanair Holdings and ATRYS HEALTH

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

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

Diversification Opportunities for Ryanair Holdings and ATRYS HEALTH

-0.55

Correlation Coefficient

Ryanair Holdings  ATRYS HEALTH

Excellent diversification

The 3 months correlation between Ryanair and ATRYS is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ryanair Holdings plc 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 Ryanair Holdings 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 Ryanair Holdings plc 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 Ryanair Holdings i.e., Ryanair Holdings and ATRYS HEALTH go up and down completely randomly.

Pair Corralation between Ryanair Holdings and ATRYS HEALTH

Assuming the 90 days trading horizon Ryanair Holdings plc is expected to under-perform the ATRYS HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Ryanair Holdings plc is 3.51 times less risky than ATRYS HEALTH. The stock trades about -0.29 of its potential returns per unit of risk. The ATRYS HEALTH SA is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  287.00  in ATRYS HEALTH SA on October 9, 2024 and sell it today you would earn a total of  40.00  from holding ATRYS HEALTH SA or generate 13.94% return on investment over 90 days.

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

Ryanair Holdings plc  vs.  ATRYS HEALTH SA

Ryanair Holdings plc

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ryanair Holdings plc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Ryanair Holdings may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 Ryanair Holdings and ATRYS HEALTH

The main advantage of trading using opposite Ryanair Holdings and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ryanair Holdings 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 Ryanair Holdings plc 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.