Correlation Between Scandinavian Tobacco and ALTAIR RES
Can any of the company-specific risk be diversified away by investing in both Scandinavian Tobacco and ALTAIR RES 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 Scandinavian Tobacco and ALTAIR RES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scandinavian Tobacco Group and ALTAIR RES INC, you can compare the effects of market volatilities on Scandinavian Tobacco and ALTAIR RES 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 Scandinavian Tobacco with a short position of ALTAIR RES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scandinavian Tobacco and ALTAIR RES.
Diversification Opportunities for Scandinavian Tobacco and ALTAIR RES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Scandinavian and ALTAIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Scandinavian Tobacco Group and ALTAIR RES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTAIR RES INC and Scandinavian Tobacco 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 Scandinavian Tobacco Group are associated (or correlated) with ALTAIR RES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTAIR RES INC has no effect on the direction of Scandinavian Tobacco i.e., Scandinavian Tobacco and ALTAIR RES go up and down completely randomly.
Pair Corralation between Scandinavian Tobacco and ALTAIR RES
If you would invest 1,270 in Scandinavian Tobacco Group on October 11, 2024 and sell it today you would earn a total of 40.00 from holding Scandinavian Tobacco Group or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Scandinavian Tobacco Group vs. ALTAIR RES INC
Performance |
| Timeline |
| Scandinavian Tobacco |
| ALTAIR RES INC |
Scandinavian Tobacco and ALTAIR RES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scandinavian Tobacco and ALTAIR RES
The main advantage of trading using opposite Scandinavian Tobacco and ALTAIR RES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scandinavian Tobacco position performs unexpectedly, ALTAIR RES 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 ALTAIR RES will offset losses from the drop in ALTAIR RES's long position.| Scandinavian Tobacco vs. Nishi Nippon Railroad Co | Scandinavian Tobacco vs. AWILCO DRILLING PLC | Scandinavian Tobacco vs. WT OFFSHORE | Scandinavian Tobacco vs. SBM OFFSHORE |
| ALTAIR RES vs. Wyndham Hotels Resorts | ALTAIR RES vs. ScanSource | ALTAIR RES vs. Xenia Hotels Resorts | ALTAIR RES vs. CLEAN ENERGY FUELS |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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