Correlation Between ATRYS HEALTH and BLUESCOPE STEEL
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and BLUESCOPE STEEL 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 BLUESCOPE STEEL 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 BLUESCOPE STEEL, you can compare the effects of market volatilities on ATRYS HEALTH and BLUESCOPE STEEL 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 BLUESCOPE STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and BLUESCOPE STEEL.
Diversification Opportunities for ATRYS HEALTH and BLUESCOPE STEEL
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ATRYS and BLUESCOPE is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and BLUESCOPE STEEL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLUESCOPE STEEL 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 BLUESCOPE STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLUESCOPE STEEL has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and BLUESCOPE STEEL go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and BLUESCOPE STEEL
Assuming the 90 days horizon ATRYS HEALTH SA is expected to under-perform the BLUESCOPE STEEL. In addition to that, ATRYS HEALTH is 1.24 times more volatile than BLUESCOPE STEEL. It trades about -0.05 of its total potential returns per unit of risk. BLUESCOPE STEEL is currently generating about 0.03 per unit of volatility. If you would invest 973.00 in BLUESCOPE STEEL on September 23, 2024 and sell it today you would earn a total of 167.00 from holding BLUESCOPE STEEL or generate 17.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ATRYS HEALTH SA vs. BLUESCOPE STEEL
Performance |
Timeline |
ATRYS HEALTH SA |
BLUESCOPE STEEL |
ATRYS HEALTH and BLUESCOPE STEEL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATRYS HEALTH and BLUESCOPE STEEL
The main advantage of trading using opposite ATRYS HEALTH and BLUESCOPE STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, BLUESCOPE STEEL 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 BLUESCOPE STEEL will offset losses from the drop in BLUESCOPE STEEL's long position.ATRYS HEALTH vs. Q2M Managementberatung AG | ATRYS HEALTH vs. HF FOODS GRP | ATRYS HEALTH vs. PT Indofood Sukses | ATRYS HEALTH vs. ASSOC BR FOODS |
BLUESCOPE STEEL vs. Apple Inc | BLUESCOPE STEEL vs. Apple Inc | BLUESCOPE STEEL vs. Apple Inc | BLUESCOPE STEEL vs. Apple Inc |
Check out your portfolio center.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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