Correlation Between Altareit and Bourse Direct
Can any of the company-specific risk be diversified away by investing in both Altareit and Bourse Direct 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 Bourse Direct into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altareit and Bourse Direct SA, you can compare the effects of market volatilities on Altareit and Bourse Direct 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 Bourse Direct. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altareit and Bourse Direct.
Diversification Opportunities for Altareit and Bourse Direct
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Altareit and Bourse is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Altareit and Bourse Direct SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bourse Direct SA 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 Bourse Direct. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bourse Direct SA has no effect on the direction of Altareit i.e., Altareit and Bourse Direct go up and down completely randomly.
Pair Corralation between Altareit and Bourse Direct
Assuming the 90 days trading horizon Altareit is expected to generate 0.2 times more return on investment than Bourse Direct. However, Altareit is 5.13 times less risky than Bourse Direct. It trades about 0.03 of its potential returns per unit of risk. Bourse Direct SA is currently generating about -0.11 per unit of risk. If you would invest 46,200 in Altareit on September 1, 2024 and sell it today you would earn a total of 600.00 from holding Altareit or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Altareit vs. Bourse Direct SA
Performance |
| Timeline |
| Altareit |
| Bourse Direct SA |
Altareit and Bourse Direct Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altareit and Bourse Direct
The main advantage of trading using opposite Altareit and Bourse Direct positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altareit position performs unexpectedly, Bourse Direct 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 Bourse Direct will offset losses from the drop in Bourse Direct's long position.| Altareit vs. Altarea SCA | Altareit vs. Carmila SA | Altareit vs. Manitou BF SA | Altareit vs. Ossiam Minimum Variance |
| Bourse Direct vs. Stef SA | Bourse Direct vs. NRJ Group | Bourse Direct vs. Savencia SA | Bourse Direct vs. ABC arbitrage 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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