Correlation Between Alfa Financial and METAIR INVTS
Can any of the company-specific risk be diversified away by investing in both Alfa Financial and METAIR INVTS 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 Alfa Financial and METAIR INVTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfa Financial Software and METAIR INVTS LTD, you can compare the effects of market volatilities on Alfa Financial and METAIR INVTS 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 Alfa Financial with a short position of METAIR INVTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and METAIR INVTS.
Diversification Opportunities for Alfa Financial and METAIR INVTS
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alfa and METAIR is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software and METAIR INVTS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on METAIR INVTS LTD and Alfa Financial 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 Alfa Financial Software are associated (or correlated) with METAIR INVTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of METAIR INVTS LTD has no effect on the direction of Alfa Financial i.e., Alfa Financial and METAIR INVTS go up and down completely randomly.
Pair Corralation between Alfa Financial and METAIR INVTS
Assuming the 90 days trading horizon Alfa Financial Software is expected to generate 0.59 times more return on investment than METAIR INVTS. However, Alfa Financial Software is 1.7 times less risky than METAIR INVTS. It trades about 0.06 of its potential returns per unit of risk. METAIR INVTS LTD is currently generating about -0.03 per unit of risk. If you would invest 198.00 in Alfa Financial Software on October 17, 2024 and sell it today you would earn a total of 34.00 from holding Alfa Financial Software or generate 17.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
Alfa Financial Software vs. METAIR INVTS LTD
Performance |
| Timeline |
| Alfa Financial Software |
| METAIR INVTS LTD |
Alfa Financial and METAIR INVTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfa Financial and METAIR INVTS
The main advantage of trading using opposite Alfa Financial and METAIR INVTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfa Financial position performs unexpectedly, METAIR INVTS 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 METAIR INVTS will offset losses from the drop in METAIR INVTS's long position.| Alfa Financial vs. ARROW ELECTRONICS | Alfa Financial vs. UNIQA INSURANCE GR | Alfa Financial vs. JSC Halyk bank | Alfa Financial vs. LPKF Laser Electronics |
| METAIR INVTS vs. AXWAY SOFTWARE EO | METAIR INVTS vs. VITEC SOFTWARE GROUP | METAIR INVTS vs. Alfa Financial Software | METAIR INVTS vs. GRUPO CARSO A1 |
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 CEOs Directory module to screen CEOs from public companies around the world.
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