Correlation Between Altair International and Blue Moon
Can any of the company-specific risk be diversified away by investing in both Altair International and Blue Moon 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 Altair International and Blue Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altair International Corp and Blue Moon Metals, you can compare the effects of market volatilities on Altair International and Blue Moon 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 Altair International with a short position of Blue Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altair International and Blue Moon.
Diversification Opportunities for Altair International and Blue Moon
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Altair and Blue is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Altair International Corp and Blue Moon Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Moon Metals and Altair International 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 Altair International Corp are associated (or correlated) with Blue Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Moon Metals has no effect on the direction of Altair International i.e., Altair International and Blue Moon go up and down completely randomly.
Pair Corralation between Altair International and Blue Moon
Given the investment horizon of 90 days Altair International Corp is expected to under-perform the Blue Moon. In addition to that, Altair International is 15.15 times more volatile than Blue Moon Metals. It trades about -0.05 of its total potential returns per unit of risk. Blue Moon Metals is currently generating about 0.22 per unit of volatility. If you would invest 24.00 in Blue Moon Metals on September 23, 2024 and sell it today you would earn a total of 1.00 from holding Blue Moon Metals or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Altair International Corp vs. Blue Moon Metals
Performance |
| Timeline |
| Altair International Corp |
| Blue Moon Metals |
Altair International and Blue Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altair International and Blue Moon
The main advantage of trading using opposite Altair International and Blue Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altair International position performs unexpectedly, Blue Moon 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 Blue Moon will offset losses from the drop in Blue Moon's long position.| Altair International vs. Global Battery Metals | Altair International vs. Lake Resources NL | Altair International vs. Jourdan Resources | Altair International vs. Lomiko Metals |
| Blue Moon vs. Altair International Corp | Blue Moon vs. Global Battery Metals | Blue Moon vs. Lake Resources NL | Blue Moon vs. Jourdan Resources |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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