Correlation Between Solaria Energa and Atrys Health

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

By analyzing existing cross correlation between Solaria Energa y and Atrys Health SL, you can compare the effects of market volatilities on Solaria Energa 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 Solaria Energa with a short position of Atrys Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solaria Energa and Atrys Health.

Diversification Opportunities for Solaria Energa and Atrys Health

-0.59

Correlation Coefficient

Solaria Energa  Atrys Health

Excellent diversification

The 3 months correlation between Solaria and Atrys is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Solaria Energa y and Atrys Health SL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrys Health SL and Solaria Energa 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 Solaria Energa y 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 SL has no effect on the direction of Solaria Energa i.e., Solaria Energa and Atrys Health go up and down completely randomly.

Pair Corralation between Solaria Energa and Atrys Health

Assuming the 90 days trading horizon Solaria Energa y is expected to under-perform the Atrys Health. In addition to that, Solaria Energa is 1.37 times more volatile than Atrys Health SL. It trades about -0.17 of its total potential returns per unit of risk. Atrys Health SL is currently generating about 0.12 per unit of volatility. If you would invest  321.00  in Atrys Health SL on October 27, 2024 and sell it today you would earn a total of  43.00  from holding Atrys Health SL or generate 13.4% return on investment over 90 days.

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

Solaria Energa y  vs.  Atrys Health SL

Solaria Energa y

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Solaria Energa y 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 rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Atrys Health SL

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atrys Health SL are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Atrys Health exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Solaria Energa and Atrys Health

The main advantage of trading using opposite Solaria Energa and Atrys Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solaria Energa 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 Solaria Energa y and Atrys Health SL 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.