Correlation Between Altair Engineering and Fiskars Oyj
Can any of the company-specific risk be diversified away by investing in both Altair Engineering and Fiskars Oyj 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 Fiskars Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Engineering and Fiskars Oyj Abp, you can compare the effects of market volatilities on Altair Engineering and Fiskars Oyj 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 Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Engineering and Fiskars Oyj.
Diversification Opportunities for Altair Engineering and Fiskars Oyj
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altair and Fiskars is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Altair Engineering and Fiskars Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiskars Oyj Abp 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 Fiskars Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiskars Oyj Abp has no effect on the direction of Altair Engineering i.e., Altair Engineering and Fiskars Oyj go up and down completely randomly.
Pair Corralation between Altair Engineering and Fiskars Oyj
Assuming the 90 days horizon Altair Engineering is expected to generate 0.39 times more return on investment than Fiskars Oyj. However, Altair Engineering is 2.59 times less risky than Fiskars Oyj. It trades about 0.17 of its potential returns per unit of risk. Fiskars Oyj Abp is currently generating about 0.04 per unit of risk. If you would invest 10,400 in Altair Engineering on October 23, 2024 and sell it today you would earn a total of 200.00 from holding Altair Engineering or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altair Engineering vs. Fiskars Oyj Abp
Performance |
| Timeline |
| Altair Engineering |
| Fiskars Oyj Abp |
Altair Engineering and Fiskars Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair Engineering and Fiskars Oyj
The main advantage of trading using opposite Altair Engineering and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Engineering position performs unexpectedly, Fiskars Oyj 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 Fiskars Oyj will offset losses from the drop in Fiskars Oyj's long position.| Altair Engineering vs. HUTCHISON TELECOMM | Altair Engineering vs. Chengdu PUTIAN Telecommunications | Altair Engineering vs. China Communications Services | Altair Engineering vs. Cal Maine Foods |
| Fiskars Oyj vs. Meiko Electronics Co | Fiskars Oyj vs. Altair Engineering | Fiskars Oyj vs. Nucletron Electronic Aktiengesellschaft | Fiskars Oyj vs. Air New Zealand |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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