Correlation Between Altareit and Mg Internation
Can any of the company-specific risk be diversified away by investing in both Altareit and Mg Internation 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 Altareit and Mg Internation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altareit and Mg Internation, you can compare the effects of market volatilities on Altareit and Mg Internation 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 Altareit with a short position of Mg Internation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altareit and Mg Internation.
Diversification Opportunities for Altareit and Mg Internation
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altareit and ALMGI is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Altareit and Mg Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mg Internation and Altareit 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 Altareit are associated (or correlated) with Mg Internation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mg Internation has no effect on the direction of Altareit i.e., Altareit and Mg Internation go up and down completely randomly.
Pair Corralation between Altareit and Mg Internation
Assuming the 90 days trading horizon Altareit is expected to under-perform the Mg Internation. But the stock apears to be less risky and, when comparing its historical volatility, Altareit is 5.44 times less risky than Mg Internation. The stock trades about -0.07 of its potential returns per unit of risk. The Mg Internation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 644.00 in Mg Internation on August 29, 2024 and sell it today you would lose (224.00) from holding Mg Internation or give up 34.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.64% |
| Values | Daily Returns |
Altareit vs. Mg Internation
Performance |
| Timeline |
| Altareit |
| Mg Internation |
Altareit and Mg Internation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altareit and Mg Internation
The main advantage of trading using opposite Altareit and Mg Internation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altareit position performs unexpectedly, Mg Internation 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 Mg Internation will offset losses from the drop in Mg Internation's long position.The idea behind Altareit and Mg Internation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mg Internation vs. Piscines Desjoyaux SA | Mg Internation vs. Moulinvest | Mg Internation vs. Groupe Sfpi | Mg Internation vs. Guillemot 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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