Correlation Between Altair Engineering and Fuji Media
Can any of the company-specific risk be diversified away by investing in both Altair Engineering and Fuji Media 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 Fuji Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Engineering and Fuji Media Holdings, you can compare the effects of market volatilities on Altair Engineering and Fuji Media 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 Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Engineering and Fuji Media.
Diversification Opportunities for Altair Engineering and Fuji Media
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Altair and Fuji is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Altair Engineering and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings 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 Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of Altair Engineering i.e., Altair Engineering and Fuji Media go up and down completely randomly.
Pair Corralation between Altair Engineering and Fuji Media
Assuming the 90 days horizon Altair Engineering is expected to generate 1.03 times more return on investment than Fuji Media. However, Altair Engineering is 1.03 times more volatile than Fuji Media Holdings. It trades about 0.09 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about 0.01 per unit of risk. If you would invest 6,800 in Altair Engineering on October 16, 2024 and sell it today you would earn a total of 3,900 from holding Altair Engineering or generate 57.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Altair Engineering vs. Fuji Media Holdings
Performance |
| Timeline |
| Altair Engineering |
| Fuji Media Holdings |
Altair Engineering and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair Engineering and Fuji Media
The main advantage of trading using opposite Altair Engineering and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Engineering position performs unexpectedly, Fuji Media 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| Altair Engineering vs. GAMING FAC SA | Altair Engineering vs. CONTAGIOUS GAMING INC | Altair Engineering vs. Penn National Gaming | Altair Engineering vs. Scientific Games |
| Fuji Media vs. COLUMBIA SPORTSWEAR | Fuji Media vs. PEPTONIC MEDICAL | Fuji Media vs. ePlay Digital | Fuji Media vs. ONWARD MEDICAL BV |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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