Correlation Between ATRYS HEALTH and TERADATA

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

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

Diversification Opportunities for ATRYS HEALTH and TERADATA

-0.25

Correlation Coefficient

ATRYS HEALTH  TERADATA

Very good diversification

The 3 months correlation between ATRYS and TERADATA is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and TERADATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TERADATA and ATRYS HEALTH 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 ATRYS HEALTH SA are associated (or correlated) with TERADATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TERADATA has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and TERADATA go up and down completely randomly.

Pair Corralation between ATRYS HEALTH and TERADATA

Assuming the 90 days horizon ATRYS HEALTH is expected to generate 3.75 times less return on investment than TERADATA. In addition to that, ATRYS HEALTH is 1.89 times more volatile than TERADATA. It trades about 0.03 of its total potential returns per unit of risk. TERADATA is currently generating about 0.2 per unit of volatility. If you would invest  2,600  in TERADATA on September 23, 2024 and sell it today you would earn a total of  480.00  from holding TERADATA or generate 18.46% return on investment over 90 days.

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

ATRYS HEALTH SA  vs.  TERADATA

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 recent stock price disturbance, may contribute to mid-run losses for the stockholders.

TERADATA

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TERADATA are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, TERADATA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ATRYS HEALTH and TERADATA

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

The idea behind ATRYS HEALTH SA and TERADATA 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 Global Correlations module to find global opportunities by holding instruments from different markets.