Correlation Between ALTAIR RES and CN MODERN
Can any of the company-specific risk be diversified away by investing in both ALTAIR RES and CN MODERN 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 RES and CN MODERN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALTAIR RES INC and CN MODERN DAIRY, you can compare the effects of market volatilities on ALTAIR RES and CN MODERN 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 RES with a short position of CN MODERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTAIR RES and CN MODERN.
Diversification Opportunities for ALTAIR RES and CN MODERN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALTAIR and 07M is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALTAIR RES INC and CN MODERN DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN MODERN DAIRY and ALTAIR RES 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 RES INC are associated (or correlated) with CN MODERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN MODERN DAIRY has no effect on the direction of ALTAIR RES i.e., ALTAIR RES and CN MODERN go up and down completely randomly.
Pair Corralation between ALTAIR RES and CN MODERN
Assuming the 90 days trading horizon ALTAIR RES INC is expected to generate 20.18 times more return on investment than CN MODERN. However, ALTAIR RES is 20.18 times more volatile than CN MODERN DAIRY. It trades about 0.07 of its potential returns per unit of risk. CN MODERN DAIRY is currently generating about 0.02 per unit of risk. If you would invest 0.75 in ALTAIR RES INC on October 11, 2024 and sell it today you would lose (0.70) from holding ALTAIR RES INC or give up 93.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
ALTAIR RES INC vs. CN MODERN DAIRY
Performance |
| Timeline |
| ALTAIR RES INC |
| CN MODERN DAIRY |
ALTAIR RES and CN MODERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALTAIR RES and CN MODERN
The main advantage of trading using opposite ALTAIR RES and CN MODERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALTAIR RES position performs unexpectedly, CN MODERN 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 CN MODERN will offset losses from the drop in CN MODERN's long position.| ALTAIR RES vs. Geely Automobile Holdings | ALTAIR RES vs. TITAN MACHINERY | ALTAIR RES vs. Cars Inc | ALTAIR RES vs. Scandinavian Tobacco Group |
| CN MODERN vs. ALTAIR RES INC | CN MODERN vs. The Hanover Insurance | CN MODERN vs. Direct Line Insurance | CN MODERN vs. REVO INSURANCE SPA |
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.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges |