Correlation Between GAMING FAC and Altair Engineering
Can any of the company-specific risk be diversified away by investing in both GAMING FAC and Altair Engineering 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 GAMING FAC and Altair Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and Altair Engineering, you can compare the effects of market volatilities on GAMING FAC and Altair Engineering 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 GAMING FAC with a short position of Altair Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and Altair Engineering.
Diversification Opportunities for GAMING FAC and Altair Engineering
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GAMING and Altair is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and Altair Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair Engineering and GAMING FAC 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 GAMING FAC SA are associated (or correlated) with Altair Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair Engineering has no effect on the direction of GAMING FAC i.e., GAMING FAC and Altair Engineering go up and down completely randomly.
Pair Corralation between GAMING FAC and Altair Engineering
Assuming the 90 days horizon GAMING FAC SA is expected to generate 4.42 times more return on investment than Altair Engineering. However, GAMING FAC is 4.42 times more volatile than Altair Engineering. It trades about 0.1 of its potential returns per unit of risk. Altair Engineering is currently generating about 0.24 per unit of risk. If you would invest 163.00 in GAMING FAC SA on October 30, 2024 and sell it today you would earn a total of 15.00 from holding GAMING FAC SA or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMING FAC SA vs. Altair Engineering
Performance |
| Timeline |
| GAMING FAC SA |
| Altair Engineering |
GAMING FAC and Altair Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and Altair Engineering
The main advantage of trading using opposite GAMING FAC and Altair Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC position performs unexpectedly, Altair Engineering 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 Engineering will offset losses from the drop in Altair Engineering's long position.| GAMING FAC vs. Marie Brizard Wine | GAMING FAC vs. Axfood AB | GAMING FAC vs. Japan Tobacco | GAMING FAC vs. BRIT AMER TOBACCO |
| Altair Engineering vs. Canon Marketing Japan | Altair Engineering vs. Fast Retailing Co | Altair Engineering vs. CODERE ONLINE LUX | Altair Engineering vs. SALESFORCE INC CDR |
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
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |