Correlation Between Home Capital and Atrys Health

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

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

Diversification Opportunities for Home Capital and Atrys Health

-0.19

Correlation Coefficient

Home Capital  Atrys Health

Good diversification

The 3 months correlation between Home and Atrys is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Home Capital Rentals 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 Home Capital 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 Home Capital Rentals 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 Home Capital i.e., Home Capital and Atrys Health go up and down completely randomly.

Pair Corralation between Home Capital and Atrys Health

Assuming the 90 days trading horizon Home Capital is expected to generate 12.93 times less return on investment than Atrys Health. But when comparing it to its historical volatility, Home Capital Rentals is 26.97 times less risky than Atrys Health. It trades about 0.13 of its potential returns per unit of risk. Atrys Health SL is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  285.00  in Atrys Health SL on April 23, 2025 and sell it today you would earn a total of  23.00  from holding Atrys Health SL or generate 8.07% return on investment over 90 days.

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

Home Capital Rentals  vs.  Atrys Health SL

Home Capital Rentals

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Home Capital Rentals are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Home Capital is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Atrys Health SL

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Atrys Health SL are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Atrys Health may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Home Capital and Atrys Health

The main advantage of trading using opposite Home Capital and Atrys Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Capital 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 Home Capital Rentals 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..