Correlation Between Cia De and Atrys Health

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

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

Diversification Opportunities for Cia De and Atrys Health

-0.47

Correlation Coefficient

Cia De  Atrys Health

Very good diversification

The 3 months correlation between Cia and Atrys is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cia de Distribucion 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 Cia De 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 Cia de Distribucion 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 Cia De i.e., Cia De and Atrys Health go up and down completely randomly.

Pair Corralation between Cia De and Atrys Health

Assuming the 90 days trading horizon Cia de Distribucion is expected to generate 1.0 times more return on investment than Atrys Health. However, Cia de Distribucion is 1.0 times less risky than Atrys Health. It trades about 0.02 of its potential returns per unit of risk. Atrys Health SL is currently generating about -0.14 per unit of risk. If you would invest  2,846  in Cia de Distribucion on February 17, 2025 and sell it today you would earn a total of  16.00  from holding Cia de Distribucion or generate 0.56% return on investment over 90 days.

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

Cia de Distribucion  vs.  Atrys Health SL

Cia de Distribucion

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cia de Distribucion are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Cia De is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the 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 weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Cia De and Atrys Health

The main advantage of trading using opposite Cia De and Atrys Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cia De 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 Cia de Distribucion 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.