Correlation Between Altair Engineering and Sugi Holdings
Can any of the company-specific risk be diversified away by investing in both Altair Engineering and Sugi Holdings 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 Sugi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair Engineering and Sugi Holdings CoLtd, you can compare the effects of market volatilities on Altair Engineering and Sugi Holdings 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 Sugi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair Engineering and Sugi Holdings.
Diversification Opportunities for Altair Engineering and Sugi Holdings
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altair and Sugi is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Altair Engineering and Sugi Holdings CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sugi Holdings CoLtd 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 Sugi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sugi Holdings CoLtd has no effect on the direction of Altair Engineering i.e., Altair Engineering and Sugi Holdings go up and down completely randomly.
Pair Corralation between Altair Engineering and Sugi Holdings
Assuming the 90 days horizon Altair Engineering is expected to generate 11.27 times less return on investment than Sugi Holdings. But when comparing it to its historical volatility, Altair Engineering is 2.83 times less risky than Sugi Holdings. It trades about 0.1 of its potential returns per unit of risk. Sugi Holdings CoLtd is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 1,500 in Sugi Holdings CoLtd on November 5, 2024 and sell it today you would earn a total of 170.00 from holding Sugi Holdings CoLtd or generate 11.33% 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. Sugi Holdings CoLtd
Performance |
| Timeline |
| Altair Engineering |
| Sugi Holdings CoLtd |
Altair Engineering and Sugi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair Engineering and Sugi Holdings
The main advantage of trading using opposite Altair Engineering and Sugi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair Engineering position performs unexpectedly, Sugi Holdings 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 Sugi Holdings will offset losses from the drop in Sugi Holdings' long position.| Altair Engineering vs. TERADATA | Altair Engineering vs. UNIQA INSURANCE GR | Altair Engineering vs. MICRONIC MYDATA | Altair Engineering vs. China Datang |
| Sugi Holdings vs. UNIVMUSIC GRPADR050 | Sugi Holdings vs. Discover Financial Services | Sugi Holdings vs. CullenFrost Bankers | Sugi Holdings vs. UNIVERSAL MUSIC GROUP |
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
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |