Correlation Between ATRESMEDIA and Heidelberg Pharma

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

By analyzing existing cross correlation between ATRESMEDIA and Heidelberg Pharma AG, you can compare the effects of market volatilities on ATRESMEDIA and Heidelberg Pharma 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 ATRESMEDIA with a short position of Heidelberg Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and Heidelberg Pharma.

Diversification Opportunities for ATRESMEDIA and Heidelberg Pharma

0.0

Correlation Coefficient

ATRESMEDIA  Heidelberg Pharma

Pay attention - limited upside

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

Pair Corralation between ATRESMEDIA and Heidelberg Pharma

If you would invest  441.00  in ATRESMEDIA on October 24, 2024 and sell it today you would lose (1.00) from holding ATRESMEDIA or give up 0.23% of portfolio value over 90 days.

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

ATRESMEDIA  vs.  Heidelberg Pharma AG

ATRESMEDIA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATRESMEDIA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, ATRESMEDIA is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Heidelberg Pharma

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Heidelberg Pharma AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Heidelberg Pharma is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ATRESMEDIA and Heidelberg Pharma

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

The idea behind ATRESMEDIA and Heidelberg Pharma AG 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.