Correlation Between Altarea SCA and Artea SA
Can any of the company-specific risk be diversified away by investing in both Altarea SCA and Artea SA 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 Altarea SCA and Artea SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altarea SCA and Artea SA, you can compare the effects of market volatilities on Altarea SCA and Artea SA 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 Altarea SCA with a short position of Artea SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altarea SCA and Artea SA.
Diversification Opportunities for Altarea SCA and Artea SA
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Altarea and Artea is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Altarea SCA and Artea SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artea SA and Altarea SCA 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 Altarea SCA are associated (or correlated) with Artea SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artea SA has no effect on the direction of Altarea SCA i.e., Altarea SCA and Artea SA go up and down completely randomly.
Pair Corralation between Altarea SCA and Artea SA
Assuming the 90 days trading horizon Altarea SCA is expected to under-perform the Artea SA. But the stock apears to be less risky and, when comparing its historical volatility, Altarea SCA is 1.67 times less risky than Artea SA. The stock trades about -0.31 of its potential returns per unit of risk. The Artea SA is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Artea SA on September 13, 2024 and sell it today you would lose (50.00) from holding Artea SA or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altarea SCA vs. Artea SA
Performance |
| Timeline |
| Altarea SCA |
| Artea SA |
Altarea SCA and Artea SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altarea SCA and Artea SA
The main advantage of trading using opposite Altarea SCA and Artea SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altarea SCA position performs unexpectedly, Artea SA 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 Artea SA will offset losses from the drop in Artea SA's long position.| Altarea SCA vs. Icade SA | Altarea SCA vs. Covivio SA | Altarea SCA vs. Mercialys SA | Altarea SCA vs. Gecina SA |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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