Correlation Between CTT Correios and Altri SGPS
Can any of the company-specific risk be diversified away by investing in both CTT Correios and Altri SGPS 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 CTT Correios and Altri SGPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTT Correios de and Altri SGPS SA, you can compare the effects of market volatilities on CTT Correios and Altri SGPS 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 CTT Correios with a short position of Altri SGPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTT Correios and Altri SGPS.
Diversification Opportunities for CTT Correios and Altri SGPS
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CTT and Altri is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding CTT Correios de and Altri SGPS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altri SGPS SA and CTT Correios 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 CTT Correios de are associated (or correlated) with Altri SGPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altri SGPS SA has no effect on the direction of CTT Correios i.e., CTT Correios and Altri SGPS go up and down completely randomly.
Pair Corralation between CTT Correios and Altri SGPS
Assuming the 90 days trading horizon CTT Correios de is expected to generate 0.71 times more return on investment than Altri SGPS. However, CTT Correios de is 1.4 times less risky than Altri SGPS. It trades about 0.21 of its potential returns per unit of risk. Altri SGPS SA is currently generating about 0.01 per unit of risk. If you would invest 428.00 in CTT Correios de on September 1, 2024 and sell it today you would earn a total of 19.00 from holding CTT Correios de or generate 4.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CTT Correios de vs. Altri SGPS SA
Performance |
| Timeline |
| CTT Correios de |
| Altri SGPS SA |
CTT Correios and Altri SGPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTT Correios and Altri SGPS
The main advantage of trading using opposite CTT Correios and Altri SGPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTT Correios position performs unexpectedly, Altri SGPS 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 Altri SGPS will offset losses from the drop in Altri SGPS's long position.| CTT Correios vs. Banco Comercial Portugues | CTT Correios vs. Sonae SGPS SA | CTT Correios vs. Galp Energia SGPS | CTT Correios vs. NOS SGPS SA |
| Altri SGPS vs. The Navigator | Altri SGPS vs. Sonae SGPS SA | Altri SGPS vs. NOS SGPS SA | Altri SGPS vs. Galp Energia SGPS |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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