Correlation Between Altheora and Exail Technologies
Can any of the company-specific risk be diversified away by investing in both Altheora and Exail Technologies 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 Altheora and Exail Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altheora SA and Exail Technologies SA, you can compare the effects of market volatilities on Altheora and Exail Technologies 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 Altheora with a short position of Exail Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altheora and Exail Technologies.
Diversification Opportunities for Altheora and Exail Technologies
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Altheora and Exail is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Altheora SA and Exail Technologies SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exail Technologies and Altheora 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 Altheora SA are associated (or correlated) with Exail Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exail Technologies has no effect on the direction of Altheora i.e., Altheora and Exail Technologies go up and down completely randomly.
Pair Corralation between Altheora and Exail Technologies
Assuming the 90 days trading horizon Altheora SA is expected to under-perform the Exail Technologies. In addition to that, Altheora is 1.15 times more volatile than Exail Technologies SA. It trades about -0.04 of its total potential returns per unit of risk. Exail Technologies SA is currently generating about 0.04 per unit of volatility. If you would invest 1,800 in Exail Technologies SA on August 26, 2024 and sell it today you would earn a total of 30.00 from holding Exail Technologies SA or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altheora SA vs. Exail Technologies SA
Performance |
| Timeline |
| Altheora SA |
| Exail Technologies |
Altheora and Exail Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altheora and Exail Technologies
The main advantage of trading using opposite Altheora and Exail Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altheora position performs unexpectedly, Exail Technologies 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 Exail Technologies will offset losses from the drop in Exail Technologies' long position.| Altheora vs. Exail Technologies SA | Altheora vs. Linedata Services SA | Altheora vs. ZCCM Investments Holdings | Altheora vs. Metalliance SA |
| Exail Technologies vs. ZCCM Investments Holdings | Exail Technologies vs. Novatech Industries SA | Exail Technologies vs. Axway Software | Exail Technologies vs. Metalliance SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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