Correlation Between ALTAIR RES and BRIT AMER
Can any of the company-specific risk be diversified away by investing in both ALTAIR RES and BRIT AMER 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 BRIT AMER 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 BRIT AMER TOBACCO, you can compare the effects of market volatilities on ALTAIR RES and BRIT AMER 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 BRIT AMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTAIR RES and BRIT AMER.
Diversification Opportunities for ALTAIR RES and BRIT AMER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALTAIR and BRIT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALTAIR RES INC and BRIT AMER TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRIT AMER TOBACCO 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 BRIT AMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRIT AMER TOBACCO has no effect on the direction of ALTAIR RES i.e., ALTAIR RES and BRIT AMER go up and down completely randomly.
Pair Corralation between ALTAIR RES and BRIT AMER
If you would invest 3,471 in BRIT AMER TOBACCO on September 20, 2024 and sell it today you would earn a total of 98.00 from holding BRIT AMER TOBACCO or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
ALTAIR RES INC vs. BRIT AMER TOBACCO
Performance |
| Timeline |
| ALTAIR RES INC |
| BRIT AMER TOBACCO |
ALTAIR RES and BRIT AMER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALTAIR RES and BRIT AMER
The main advantage of trading using opposite ALTAIR RES and BRIT AMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALTAIR RES position performs unexpectedly, BRIT AMER 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 BRIT AMER will offset losses from the drop in BRIT AMER's long position.| ALTAIR RES vs. G8 EDUCATION | ALTAIR RES vs. Laureate Education | ALTAIR RES vs. MI Homes | ALTAIR RES vs. Corporate Office Properties |
| BRIT AMER vs. The Hanover Insurance | BRIT AMER vs. ZURICH INSURANCE GROUP | BRIT AMER vs. Tower One Wireless | BRIT AMER vs. United Insurance Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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