Correlation Between Altair Engineering and CLEAR CHANNEL
Can any of the company-specific risk be diversified away by investing in both Altair Engineering and CLEAR CHANNEL 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 CLEAR CHANNEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Engineering and CLEAR CHANNEL OHA, you can compare the effects of market volatilities on Altair Engineering and CLEAR CHANNEL 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 CLEAR CHANNEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Engineering and CLEAR CHANNEL.
Diversification Opportunities for Altair Engineering and CLEAR CHANNEL
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altair and CLEAR is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Altair Engineering and CLEAR CHANNEL OHA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLEAR CHANNEL OHA 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 CLEAR CHANNEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLEAR CHANNEL OHA has no effect on the direction of Altair Engineering i.e., Altair Engineering and CLEAR CHANNEL go up and down completely randomly.
Pair Corralation between Altair Engineering and CLEAR CHANNEL
Assuming the 90 days horizon Altair Engineering is expected to generate 0.54 times more return on investment than CLEAR CHANNEL. However, Altair Engineering is 1.85 times less risky than CLEAR CHANNEL. It trades about 0.08 of its potential returns per unit of risk. CLEAR CHANNEL OHA is currently generating about 0.02 per unit of risk. If you would invest 4,900 in Altair Engineering on October 13, 2024 and sell it today you would earn a total of 5,700 from holding Altair Engineering or generate 116.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altair Engineering vs. CLEAR CHANNEL OHA
Performance |
| Timeline |
| Altair Engineering |
| CLEAR CHANNEL OHA |
Altair Engineering and CLEAR CHANNEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair Engineering and CLEAR CHANNEL
The main advantage of trading using opposite Altair Engineering and CLEAR CHANNEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Engineering position performs unexpectedly, CLEAR CHANNEL 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 CLEAR CHANNEL will offset losses from the drop in CLEAR CHANNEL's long position.| Altair Engineering vs. PROSIEBENSAT1 MEDIADR4 | Altair Engineering vs. Flutter Entertainment PLC | Altair Engineering vs. Strategic Education | Altair Engineering vs. Xinhua Winshare Publishing |
| CLEAR CHANNEL vs. Altair Engineering | CLEAR CHANNEL vs. BRAGG GAMING GRP | CLEAR CHANNEL vs. Delta Air Lines | CLEAR CHANNEL vs. Media and Games |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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