Correlation Between Creotech Instruments and Alta SA
Can any of the company-specific risk be diversified away by investing in both Creotech Instruments and Alta SA 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 Creotech Instruments and Alta SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creotech Instruments SA and Alta SA, you can compare the effects of market volatilities on Creotech Instruments and Alta SA 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 Creotech Instruments with a short position of Alta SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creotech Instruments and Alta SA.
Diversification Opportunities for Creotech Instruments and Alta SA
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Creotech and Alta is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Creotech Instruments SA and Alta SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta SA and Creotech Instruments 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 Creotech Instruments SA are associated (or correlated) with Alta SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta SA has no effect on the direction of Creotech Instruments i.e., Creotech Instruments and Alta SA go up and down completely randomly.
Pair Corralation between Creotech Instruments and Alta SA
Assuming the 90 days trading horizon Creotech Instruments is expected to generate 1.71 times less return on investment than Alta SA. But when comparing it to its historical volatility, Creotech Instruments SA is 1.33 times less risky than Alta SA. It trades about 0.04 of its potential returns per unit of risk. Alta SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 150.00 in Alta SA on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Alta SA or generate 66.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creotech Instruments SA vs. Alta SA
Performance |
| Timeline |
| Creotech Instruments |
| Alta SA |
Creotech Instruments and Alta SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creotech Instruments and Alta SA
The main advantage of trading using opposite Creotech Instruments and Alta SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creotech Instruments position performs unexpectedly, Alta SA 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 Alta SA will offset losses from the drop in Alta SA's long position.| Creotech Instruments vs. Asseco Business Solutions | Creotech Instruments vs. Detalion Games SA | Creotech Instruments vs. CFI Holding SA | Creotech Instruments vs. HM Inwest SA |
| Alta SA vs. PMPG Polskie Media | Alta SA vs. Echo Investment SA | Alta SA vs. Creotech Instruments SA | Alta SA vs. Tower Investments 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world |