Correlation Between Alta SA and X Trade
Can any of the company-specific risk be diversified away by investing in both Alta SA and X Trade 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 Alta SA and X Trade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alta SA and X Trade Brokers, you can compare the effects of market volatilities on Alta SA and X Trade 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 Alta SA with a short position of X Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alta SA and X Trade.
Diversification Opportunities for Alta SA and X Trade
Pay attention - limited upside
The 3 months correlation between Alta and XTB is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alta SA and X Trade Brokers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Trade Brokers and Alta SA 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 Alta SA are associated (or correlated) with X Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Trade Brokers has no effect on the direction of Alta SA i.e., Alta SA and X Trade go up and down completely randomly.
Pair Corralation between Alta SA and X Trade
Assuming the 90 days trading horizon Alta SA is expected to generate 2.13 times more return on investment than X Trade. However, Alta SA is 2.13 times more volatile than X Trade Brokers. It trades about 0.04 of its potential returns per unit of risk. X Trade Brokers is currently generating about -0.11 per unit of risk. If you would invest 214.00 in Alta SA on September 18, 2024 and sell it today you would earn a total of 3.00 from holding Alta SA or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alta SA vs. X Trade Brokers
Performance |
| Timeline |
| Alta SA |
| X Trade Brokers |
Alta SA and X Trade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alta SA and X Trade
The main advantage of trading using opposite Alta SA and X Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alta SA position performs unexpectedly, X Trade 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 X Trade will offset losses from the drop in X Trade's long position.| Alta SA vs. MCI Management SA | Alta SA vs. Immobile | Alta SA vs. Asseco Business Solutions | Alta SA vs. Asseco South Eastern |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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