Correlation Between ALTAIR RES and Cross Country
Can any of the company-specific risk be diversified away by investing in both ALTAIR RES and Cross Country 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 Cross Country 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 Cross Country Healthcare, you can compare the effects of market volatilities on ALTAIR RES and Cross Country 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 Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTAIR RES and Cross Country.
Diversification Opportunities for ALTAIR RES and Cross Country
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ALTAIR and Cross is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ALTAIR RES INC and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare 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 Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of ALTAIR RES i.e., ALTAIR RES and Cross Country go up and down completely randomly.
Pair Corralation between ALTAIR RES and Cross Country
Assuming the 90 days trading horizon ALTAIR RES INC is expected to generate 12.1 times more return on investment than Cross Country. However, ALTAIR RES is 12.1 times more volatile than Cross Country Healthcare. It trades about 0.05 of its potential returns per unit of risk. Cross Country Healthcare is currently generating about 0.0 per unit of risk. If you would invest 0.40 in ALTAIR RES INC on September 12, 2024 and sell it today you would lose (0.35) from holding ALTAIR RES INC or give up 87.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.48% |
| Values | Daily Returns |
ALTAIR RES INC vs. Cross Country Healthcare
Performance |
| Timeline |
| ALTAIR RES INC |
| Cross Country Healthcare |
ALTAIR RES and Cross Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALTAIR RES and Cross Country
The main advantage of trading using opposite ALTAIR RES and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALTAIR RES position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.| ALTAIR RES vs. American Lithium Corp | ALTAIR RES vs. ADRIATIC METALS LS 013355 | ALTAIR RES vs. Superior Plus Corp | ALTAIR RES vs. SIVERS SEMICONDUCTORS AB |
| Cross Country vs. Seven West Media | Cross Country vs. Universal Entertainment | Cross Country vs. TOWNSQUARE MEDIA INC | Cross Country vs. Goosehead Insurance |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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