Correlation Between ATRYS HEALTH and US FOODS

Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and US FOODS 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 US FOODS 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 US FOODS HOLDING, you can compare the effects of market volatilities on ATRYS HEALTH and US FOODS 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 US FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and US FOODS.

Diversification Opportunities for ATRYS HEALTH and US FOODS

-0.63

Correlation Coefficient

ATRYS HEALTH  US FOODS

Excellent diversification

The 3 months correlation between ATRYS and UFH is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and US FOODS HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US FOODS HOLDING 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 US FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US FOODS HOLDING has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and US FOODS go up and down completely randomly.

Pair Corralation between ATRYS HEALTH and US FOODS

Assuming the 90 days horizon ATRYS HEALTH SA is expected to generate 2.64 times more return on investment than US FOODS. However, ATRYS HEALTH is 2.64 times more volatile than US FOODS HOLDING. It trades about 0.02 of its potential returns per unit of risk. US FOODS HOLDING is currently generating about -0.09 per unit of risk. If you would invest  300.00  in ATRYS HEALTH SA on September 24, 2024 and sell it today you would earn a total of  1.00  from holding ATRYS HEALTH SA or generate 0.33% return on investment over 90 days.

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

ATRYS HEALTH SA  vs.  US FOODS HOLDING

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

US FOODS HOLDING

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in US FOODS HOLDING are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical indicators, US FOODS exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ATRYS HEALTH and US FOODS

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

The idea behind ATRYS HEALTH SA and US FOODS HOLDING 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.