Correlation Between Altair Engineering and SCOR SE
Can any of the company-specific risk be diversified away by investing in both Altair Engineering and SCOR SE 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 SCOR SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Engineering and SCOR SE, you can compare the effects of market volatilities on Altair Engineering and SCOR SE 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 SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Engineering and SCOR SE.
Diversification Opportunities for Altair Engineering and SCOR SE
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Altair and SCOR is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Altair Engineering and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE 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 SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of Altair Engineering i.e., Altair Engineering and SCOR SE go up and down completely randomly.
Pair Corralation between Altair Engineering and SCOR SE
Assuming the 90 days horizon Altair Engineering is expected to generate 0.88 times more return on investment than SCOR SE. However, Altair Engineering is 1.13 times less risky than SCOR SE. It trades about 0.08 of its potential returns per unit of risk. SCOR SE is currently generating about 0.03 per unit of risk. If you would invest 5,350 in Altair Engineering on November 5, 2024 and sell it today you would earn a total of 5,250 from holding Altair Engineering or generate 98.13% 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. SCOR SE
Performance |
| Timeline |
| Altair Engineering |
| SCOR SE |
Altair Engineering and SCOR SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair Engineering and SCOR SE
The main advantage of trading using opposite Altair Engineering and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Engineering position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.| Altair Engineering vs. TERADATA | Altair Engineering vs. UNIQA INSURANCE GR | Altair Engineering vs. MICRONIC MYDATA | Altair Engineering vs. China Datang |
| SCOR SE vs. SIDETRADE EO 1 | SCOR SE vs. FAST RETAIL ADR | SCOR SE vs. Renesas Electronics | SCOR SE vs. KIMBALL ELECTRONICS |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |