Correlation Between Altia Oyj and Talanx AG
Can any of the company-specific risk be diversified away by investing in both Altia Oyj and Talanx AG 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 Altia Oyj and Talanx AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altia Oyj and Talanx AG, you can compare the effects of market volatilities on Altia Oyj and Talanx AG 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 Altia Oyj with a short position of Talanx AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altia Oyj and Talanx AG.
Diversification Opportunities for Altia Oyj and Talanx AG
Average diversification
The 3 months correlation between Altia and Talanx is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Altia Oyj and Talanx AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talanx AG and Altia Oyj 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 Altia Oyj are associated (or correlated) with Talanx AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talanx AG has no effect on the direction of Altia Oyj i.e., Altia Oyj and Talanx AG go up and down completely randomly.
Pair Corralation between Altia Oyj and Talanx AG
Assuming the 90 days horizon Altia Oyj is expected to under-perform the Talanx AG. In addition to that, Altia Oyj is 1.12 times more volatile than Talanx AG. It trades about -0.55 of its total potential returns per unit of risk. Talanx AG is currently generating about 0.33 per unit of volatility. If you would invest 7,140 in Talanx AG on August 29, 2024 and sell it today you would earn a total of 730.00 from holding Talanx AG or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altia Oyj vs. Talanx AG
Performance |
| Timeline |
| Altia Oyj |
| Talanx AG |
Altia Oyj and Talanx AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altia Oyj and Talanx AG
The main advantage of trading using opposite Altia Oyj and Talanx AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altia Oyj position performs unexpectedly, Talanx AG 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 Talanx AG will offset losses from the drop in Talanx AG's long position.| Altia Oyj vs. LANSON BCC INH EO | Altia Oyj vs. VIRGIN WINES UK | Altia Oyj vs. Superior Plus Corp | Altia Oyj vs. NMI Holdings |
| Talanx AG vs. EAST SIDE GAMES | Talanx AG vs. Hochschild Mining plc | Talanx AG vs. National Beverage Corp | Talanx AG vs. The Boston Beer |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |