Correlation Between Altri SGPS and CTT Correios
Can any of the company-specific risk be diversified away by investing in both Altri SGPS and CTT Correios 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 Altri SGPS and CTT Correios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altri SGPS SA and CTT Correios de, you can compare the effects of market volatilities on Altri SGPS and CTT Correios 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 Altri SGPS with a short position of CTT Correios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altri SGPS and CTT Correios.
Diversification Opportunities for Altri SGPS and CTT Correios
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Altri and CTT is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Altri SGPS SA and CTT Correios de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTT Correios de and Altri SGPS 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 Altri SGPS SA are associated (or correlated) with CTT Correios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTT Correios de has no effect on the direction of Altri SGPS i.e., Altri SGPS and CTT Correios go up and down completely randomly.
Pair Corralation between Altri SGPS and CTT Correios
Assuming the 90 days trading horizon Altri SGPS is expected to generate 11.16 times less return on investment than CTT Correios. In addition to that, Altri SGPS is 1.4 times more volatile than CTT Correios de. It trades about 0.01 of its total potential returns per unit of risk. CTT Correios de is currently generating about 0.21 per unit of volatility. If you would invest 428.00 in CTT Correios de on September 1, 2024 and sell it today you would earn a total of 19.00 from holding CTT Correios de or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Altri SGPS SA vs. CTT Correios de
Performance |
| Timeline |
| Altri SGPS SA |
| CTT Correios de |
Altri SGPS and CTT Correios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altri SGPS and CTT Correios
The main advantage of trading using opposite Altri SGPS and CTT Correios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altri SGPS position performs unexpectedly, CTT Correios 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 CTT Correios will offset losses from the drop in CTT Correios' long position.| Altri SGPS vs. The Navigator | Altri SGPS vs. Sonae SGPS SA | Altri SGPS vs. NOS SGPS SA | Altri SGPS vs. Galp Energia SGPS |
| CTT Correios vs. Banco Comercial Portugues | CTT Correios vs. Sonae SGPS SA | CTT Correios vs. Galp Energia SGPS | CTT Correios vs. NOS SGPS 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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