Correlation Between Elaia Investment and Atrys Health

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

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

Diversification Opportunities for Elaia Investment and Atrys Health

0.56

Correlation Coefficient

Elaia Investment  Atrys Health

Very weak diversification

The 3 months correlation between Elaia and Atrys is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Elaia Investment Spain 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 Elaia Investment 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 Elaia Investment Spain 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 Elaia Investment i.e., Elaia Investment and Atrys Health go up and down completely randomly.

Pair Corralation between Elaia Investment and Atrys Health

Assuming the 90 days trading horizon Elaia Investment Spain is expected to under-perform the Atrys Health. But the stock apears to be less risky and, when comparing its historical volatility, Elaia Investment Spain is 1.24 times less risky than Atrys Health. The stock trades about -0.37 of its potential returns per unit of risk. The Atrys Health SL is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  350.00  in Atrys Health SL on December 29, 2024 and sell it today you would lose (48.00) from holding Atrys Health SL or give up 13.71% of portfolio value over 90 days.

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

Elaia Investment Spain  vs.  Atrys Health SL

Elaia Investment Spain

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elaia Investment Spain 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 fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Atrys Health SL

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atrys Health SL 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 fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Elaia Investment and Atrys Health

The main advantage of trading using opposite Elaia Investment and Atrys Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elaia Investment 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 Elaia Investment Spain 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.