Correlation Between Altair Engineering and SOGECLAIR
Can any of the company-specific risk be diversified away by investing in both Altair Engineering and SOGECLAIR 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 Altair Engineering and SOGECLAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Engineering and SOGECLAIR SA INH, you can compare the effects of market volatilities on Altair Engineering and SOGECLAIR 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 Altair Engineering with a short position of SOGECLAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Engineering and SOGECLAIR.
Diversification Opportunities for Altair Engineering and SOGECLAIR
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Altair and SOGECLAIR is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Altair Engineering and SOGECLAIR SA INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOGECLAIR SA INH and Altair Engineering 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 Altair Engineering are associated (or correlated) with SOGECLAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOGECLAIR SA INH has no effect on the direction of Altair Engineering i.e., Altair Engineering and SOGECLAIR go up and down completely randomly.
Pair Corralation between Altair Engineering and SOGECLAIR
Assuming the 90 days horizon Altair Engineering is expected to generate 0.65 times more return on investment than SOGECLAIR. However, Altair Engineering is 1.55 times less risky than SOGECLAIR. It trades about 0.17 of its potential returns per unit of risk. SOGECLAIR SA INH is currently generating about -0.06 per unit of risk. If you would invest 7,400 in Altair Engineering on November 3, 2024 and sell it today you would earn a total of 3,200 from holding Altair Engineering or generate 43.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altair Engineering vs. SOGECLAIR SA INH
Performance |
| Timeline |
| Altair Engineering |
| SOGECLAIR SA INH |
Altair Engineering and SOGECLAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair Engineering and SOGECLAIR
The main advantage of trading using opposite Altair Engineering and SOGECLAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Engineering position performs unexpectedly, SOGECLAIR 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 SOGECLAIR will offset losses from the drop in SOGECLAIR's long position.| Altair Engineering vs. Geely Automobile Holdings | Altair Engineering vs. MUTUIONLINE | Altair Engineering vs. Cars Inc | Altair Engineering vs. PACIFIC ONLINE |
| SOGECLAIR vs. CANON MARKETING JP | SOGECLAIR vs. CARSALESCOM | SOGECLAIR vs. Firan Technology Group | SOGECLAIR vs. Canon Marketing Japan |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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