Correlation Between Altri SGPS and Teixeira Duarte
Can any of the company-specific risk be diversified away by investing in both Altri SGPS and Teixeira Duarte 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 Teixeira Duarte 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 Teixeira Duarte, you can compare the effects of market volatilities on Altri SGPS and Teixeira Duarte 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 Teixeira Duarte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altri SGPS and Teixeira Duarte.
Diversification Opportunities for Altri SGPS and Teixeira Duarte
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Altri and Teixeira is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Altri SGPS SA and Teixeira Duarte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teixeira Duarte 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 Teixeira Duarte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teixeira Duarte has no effect on the direction of Altri SGPS i.e., Altri SGPS and Teixeira Duarte go up and down completely randomly.
Pair Corralation between Altri SGPS and Teixeira Duarte
Assuming the 90 days trading horizon Altri SGPS is expected to generate 3.65 times less return on investment than Teixeira Duarte. But when comparing it to its historical volatility, Altri SGPS SA is 2.88 times less risky than Teixeira Duarte. It trades about 0.03 of its potential returns per unit of risk. Teixeira Duarte is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.90 in Teixeira Duarte on August 29, 2024 and sell it today you would earn a total of 1.94 from holding Teixeira Duarte or generate 28.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altri SGPS SA vs. Teixeira Duarte
Performance |
| Timeline |
| Altri SGPS SA |
| Teixeira Duarte |
Altri SGPS and Teixeira Duarte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altri SGPS and Teixeira Duarte
The main advantage of trading using opposite Altri SGPS and Teixeira Duarte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altri SGPS position performs unexpectedly, Teixeira Duarte 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 Teixeira Duarte will offset losses from the drop in Teixeira Duarte's 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 |
| Teixeira Duarte vs. Banco Comercial Portugues | Teixeira Duarte vs. Sonae SGPS SA | Teixeira Duarte vs. Galp Energia SGPS | Teixeira Duarte 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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